Going Concern Value

Going concern value (GCV) reflects the fact that equipment in place and operating is worth more than the same equipment sitting in a warehouse. The premium above FMV represents:

• Installation costs: Foundations, electrical, plumbing, ventilation
• Commissioning costs: Calibration, qualification runs, operator training
• Business continuity: Uninterrupted production has commercial value

Going concern value in practice

GCV matters most when:

• Acquiring an entire plant or production line (a buyer pays a premium to avoid reinstallation costs)
• Insurance: Business interruption coverage sometimes incorporates GCV to cover the cost of replacement and re-commissioning, not just the equipment purchase price
• Litigation: Damages for destroyed or seized operating equipment may include going concern value

Going concern vs. liquidation value

GCV assumes the business continues operating. Liquidation values (OLV, FLV) assume the opposite — the business is winding down and assets are being dispersed. GCV is always ≥ FMV; OLV and FLV are always ≤ FMV.