2.3 Going Concern Value A going concern value assumes that the company will continue its business, generally in the manner in which it has conducted itself in the past, and is based on the company’s ability to generate cash earnings. The foundation for business valuation is based on the same principles used in valuing real estate. The three approaches to be considered are • The Market Approach, • The Income Approach • The Asset Based Approach. There are many acceptable valuation methods available under each of these approaches. The applicability of each approach and method utilized can be determined by the nature of the business, the fact pattern, and the available information to determine the fair market value of the subject business.
