What kind of value does "Going Concern" vs. market value primarily focus on?

The concept of "Going Concern" value emphasizes the combined value of both physical and intangible assets within an operating enterprise. This valuation method is particularly relevant for businesses that encompass not just tangible properties like buildings and equipment, but also intangible components such as brand reputation, customer loyalty, and proprietary technology or processes.

When evaluating a going concern, the appraiser considers how these intangible assets contribute to the overall profitability and operations of the business in a way that is significantly different from simply assessing the market value of a property. Market value typically focuses on the price a property could sell for under normal market conditions, while going concern value takes into account the sustainable income generation capability of the enterprise as a whole, recognizing that the value lies in the ongoing operations that encompass not only physical assets but also strategic advantages and business relationships.

This distinction is crucial in contexts like business sales or mergers, where the true value is derived from the entire operational capability rather than just the physical assets that could be sold individually on the market.