{"ok":true,"canonical_url":"https://dealroom.so/glossary/going-concern-value","api_url":"https://dealroom.so/api/public/glossary/going-concern-value","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"going-concern-value","term":"Going concern value","group":"Reading the business","definition":"This is the value of a business as an operating entity, including its future earning potential, rather than just the sum of its individual assets if liquidated.","what_it_means":"Most SBA 7(a) business acquisitions are based on the going concern value, which is typically higher than liquidation value because it accounts for intangible assets like customer relationships, brand, and established cash flow. Your business valuation will focus on this, and the SBA wants to see a viable business that can continue to operate and generate profits.","url":"https://dealroom.so/glossary/going-concern-value","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"},{"slug":"liquidation-value","term":"Liquidation Value","url":"https://dealroom.so/glossary/liquidation-value"}],"related_questions":[{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"},{"question":"What if the acquired business's real estate has an environmental concern requiring remediation?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-s-real-estate-has-an-environmental-concern-requiring-remedia"},{"question":"What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-purpose-of-the-annual-service-fee-on-going-guaranty-fee-for-an-sba-7-a-loan"},{"question":"How does the SBA calculate the annual service fee (on-going guaranty fee) charged to the lender for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-calculate-the-annual-service-fee-on-going-guaranty-fee-charged-to-the-len"},{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"},{"question":"How does the SBA evaluate the value of contributed equipment for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-value-of-contributed-equipment-for-equity-injection"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Going concern value","url":"https://dealroom.so/glossary/going-concern-value","source_type":"DealRoom Data"}}