This would be a write down of stock and some aged bad debt. Company trading over 10 years and has a customer base and well known. Sales down due to recession and disagreements to take on new sales staff. Business has to be worth something, goodwill agree is normally above and beyond, business turnover is 1-2 millions and just need a refresh,, but one of the shareholders looking to sell and move to australia but has been offered 2k for 30% of shareholding...so a figure pulled from air, bit like the 200k, but that was done on a 4:1 ratio that some people use...
Surely he can expect more than that, otherwise if agreed he better leaving there but that might not always work either...