Helping a Friend Sell Their Thriving Business in NSW - Is 50K Too Low?

Sharon Asks:

This question is not about me, but someone i know… she has had a thriving business for 14 years, it cleared 300 grand last year, she employs about 4 people. It wasnt always, but is now a shopify business.
She has had enough and wants to sell the business, but has no clue how to go about it. She is selling it for 50 thousand, which in my opinion is crazy. I cant afford to buy it and don’t want to i have my own thing going. But is there some way i can help or convince her to seek out a better price, at 50 grand she is giving it away she would have more than that in stock and equipment alone.

• Thriving Business - 14 Years & Cleared 300K Last Year
• Employs 4 People & Now Shopify Business
• Wants to Sell But Has No Clue How
• Asking Price is 50K - Is This Too Low?
• How Can Friend Be Helped/Convinced to Seek Better Price?

Our advice to Sharon’s friend is:

• Speak to a lawyer and accountant to help get the ball rolling.
• Consider using a business broker.
• Consider using Flippa to auction off the business with a reserve price.
• Speak to someone at who may be able to help.
• Consider handing the business over to a long-term employee.
• Value the business based on a multiple of its net profit.
• Realize that the business and the stock are two separate parts of the sale.
• Seek advice from Business Connect Service (in NSW) or a similar service in other states.