Define: Going Value

Going value refers to the intangible value of a business that is derived from its established customer base, reputation, and goodwill. It represents the potential for future earnings and is often considered in business valuations and sales.

Unlike tangible assets such as buildings or equipment, going value cannot be physically touched or measured. It is based on the intangible aspects of a business that contribute to its ongoing success.

Yes, going value can be transferred or sold separately from a business. It can be included as part of a business sale or transferred through licensing agreements or franchise arrangements.

Determining the going value of a business involves assessing various factors such as the business’s reputation, customer loyalty, brand recognition, and market position. Financial indicators like revenue growth and profitability are also considered.

Yes, going value can be protected legally through various means. Non-compete agreements, confidentiality agreements, and intellectual property rights can help safeguard a business’s going value by preventing competitors from exploiting its intangible assets.

In the event of a business dissolution or bankruptcy, the going value may be lost or significantly diminished. Creditors and stakeholders may attempt to recover their investments by liquidating tangible assets, leaving little value for intangible aspects like going value.

Yes, going value can be used as collateral for loans or financing. Lenders may consider a business’s going value as an additional asset that can be used to secure funding.

A business can enhance its going value by consistently delivering high-quality products or services, building strong customer relationships, investing in marketing and branding efforts, and maintaining a positive reputation in the marketplace.

Yes, going value can be subject to taxation. Depending on the jurisdiction, the value of a business’s intangible assets, including going value, may be assessed for tax purposes.

To protect going value during a business sale or transfer, it is advisable to draft comprehensive agreements that address non-compete clauses, confidentiality provisions, and intellectual property rights. Consulting with legal professionals experienced in business transactions can help ensure the proper protection of going value.