In the context of real estate appraisal, the going-concern value of a property is effectively the sum of the value attributed to its: (1) land (2) building and site improvements (3) furniture, fixtures, and equipment (FF&E) and operating supplies and equipment (OS&E) and (4) goodwill and intangibles, if any. The intangible elements of going concern value result from factors such as having a trained work force, an operational plant, and the necessary licenses, systems, and procedures in place.”
#THE APPRAISAL OF REAL ESTATE THIRD CANADIAN EDITION PDF PROFESSIONAL#
The term "going-concern" is not defined in the Canadian Uniform Standards of Professional Practice ( CUSPAP), although it is defined in The Appraisal of Real Estate, 3rd Edition, wherein the definition is: “All tangible and intangible assets of an established and operating business with an indefinite life.” Īccording to the Canadian Institute of Chartered Business Valuators’ (CICBV), the definition of "going-concern value" is: “The value of a business enterprise that is expected to continue to operate into the future. Real property appraisers often value special-use properties, hotels, and senior care facilities, to name a few, on a going-concern basis. Republished here with the author's permission. This post was originally published in the Canadian Property Valuation Magazine by JT Dhoot, AACI, CBV of Omnis Valuations.
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