California Business Lawyer: Additional Valuation Terminology

Written by Adam Peck Category: Injury Law January 15th, 2013 2 min read

Going-Concern Value:

Going-concern value is the additional element of value that attaches to tangible and intangible business property because it is part of an operating business, or a “going concern.” The going concern is considered to have a product or service, the necessary assets in place, a work force, finances, operating procedures, and all other tangible and intangible assets needed to make the business viable says California Business Attorney Steven C. Peck.

Liquidation Value:

Liquidation value is the amount the owner would receive if the business were to be terminated and the assets sold off piecemeal. A business enterprise may sometimes have more value in liquidation than as a going concern, e.g., when its earning power is only marginal in comparison to the liquidated value of the assets.

Appraisers make a distinction between market values in forced liquidation (implies a very limited time and usually a sale by auction or to a lot buyer) and market values in orderly liquidation (often 30 to 60 days) indicates Los Angeles Business Attorney Steven C. Peck.

Business Enterprise:

A business enterprise is a commercial, industrial, or service organization pursuing an economic activity. The business entity can be a sole propietorship, a partnership, limited liability company, or a corporation. The term includes all the firm’s tangible and intangible assets and its liabilities says California Business Lawyer Peck. A common misconception is that a corporation’s business is distinct from its current and fixed assets and is synonymous with intangilbe assets such as goodwill. Porperly construed, the term ” business enterprise” encompasses current, fixed, and intangible assets; liabilities; and shareholders’ equity Los Angeles Business Attorney Steven C. Peck states.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.