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. We will present a case study of a virtual company sold by Strategic Exits which demonstrates these advantages.

David Rowat is a seasoned senior executive in the technology industry. He has served variously as Chief Financial Officer, Chief Executive Officer and Chief Operating Officer, working with 75 companies in the past 35 years.

David has a broad functional background with a specialty in M&A, operations, financial controls, finance, strategic planning and Board governance.

David is a partner in Strategic Exits Corp, a boutique investment bank which works only with technology companies and their founders to help them design and execute optimum exit transactions.