Going concern
The assumption that an entity will continue operating, relevant to financial reporting and valuation. Uncertainty about continued operation requires assessment of facts, scenarios and applicable disclosure requirements.
Going concern in round numbers
Hypothetical: annual earnings before interest, taxes, depreciation and amortization (EBITDA) of US$5.83m at an assumed 8x enterprise-value multiple indicates US$46.64m, approximately US$46.6m, on a continuing-operation basis. A liquidation analysis would separately assess realizable assets, costs, claims and timing. No liquidation amount is supplied, and it is not automatically a valuation floor.
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| Basis | Information |
|---|---|
| Continuing operation | US$5.83m annual EBITDA × 8 = US$46.64m indicative EV |
| Liquidation | Separate realizations, costs, claims and timing analysis required |
| Comparison limit | No liquidation value supplied; no numerical floor implied |
Terms Related to Going concern
Liquidation value · Fair market value · DCF · All of the glossary
