G

Going Concern

The concept assumes that the business will continue to function in the future, and so jobs are saved, sometimes even a higher price might be obtained. Company directors or the director board can make such a decision. Regarding to an IVA, the concept is used when an insolvency practitioner makes a decision to sell a business in order to obtain a higher price. It is important to note that in case of an IVA the situation changes: the appointed insolvency practitioner makes the going concern decision, and not the board of directors, since during an IVA the insolvency practitioner will have more rights over a company and he will be able to make such important decisions.