Going concern value

Going Concern Value image

Going concern value and the definition of going concern. Broadly speaking going concern is referring to a business operating at a profit, which is expected to trade for the foreseeable future.

The foreseeable future for this purpose is normally regarded as 12 months. Going concern value is key if you are selling a business as a going concern. Likewise if you are buying a business as a going concern, you will be keen to know whether the business is likely to continue trading into the foreseeable future.

The value of a business will be adversely affected if it’s not considered to be a going concern. In this case either a liquidation value or a receivership value will be placed on the business.

What to invest in now? Best money investments

Firstly, I apologise for my absence on my own blog – I have been away investing and would like to discuss with you what to invest in now, with interest rates still at an all time low across the globe.

I have just invested in a new business and this has taken up my time – I bought a new business back in October 2010 and will admit that it has taken all my focus for the last 6-8 months. The industry was completely new to me and the learning curve extremely steep – the business designs, manufactures and installs fitted furniture, mostly built in bedrooms and home offices – so it is not only and industry I don’t know, but also I have never run a manufacturing business!