Going Concern Value

The value of a business assuming it will continue in operation, thus likely including an effective mark-up of the asset value based on the continuing “goodwill” and ability of the business to generate income. Whether a debtor’s business is valued on a going concern or on a liquidation basis can be the critical factor in determining whether a creditor is oversecured or undersecured, whether and to what extent it is entitled to adequate protection, and whether a plan is fair and equitable and otherwise satisfies plan confirmation requirements.

See also Adequate Protection, Confirmation Requirements, Liquidation Value, Oversecured Creditor, Undersecured Creditor, Valuation.

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