Why Virtual Companies Generate More Money for Their Founders and Investors

Virtual (all-remote) companies eliminate facilities costs and reduce overhead, making them cheaper to operate. Because they don’t need to commute, workers enjoy the extra personal time and flexible work schedules. Companies can recruit the best workers from around the world, often at less cost. Virtual companies generate more income and cost less, so they are more profitable. With less overhead, they are more agile. For these reasons, acquirers will pay more to buy a virtual company than a comparable conventional bricks and mortar company. Because virtual companies scale more easily, they need to raise less financing. They can avoid venture capital and its punitive terms. Founders suffer less dilution and keep more of the proceeds when the company is sold.

Join David Rowat, Partner at Strategic Exits. He will explore further why virtual companies sell for more money, and explain the Founders Wealth Creation formula which quantifies the financial advantages of virtual companies.