July 11, 2020
Virtual Companies Sell for More Money
(and the Founders Keep More of It)
Online presentation to the Keiretsu Forum Northwest Chapter
June 16, 2020.
Virtual companies (where there is no physical head office and everyone works online) are worth more money when the company exits, compared to conventional bricks & mortar companies. Virtual company founders take home more of the proceeds.
HIGHLIGHTS OF WHY VIRTUAL COMPANIES SELL FOR MORE MONEY
- Are easily established, efficiently financed, and quickly scaled
- Attract the best workers worldwide, and supersede geographic boundaries
- Have significantly lower costs
- … all of which makes them more valuable to Buyers
- Reduce dilution to founders
- Minimize corporate income taxes, and taxes on the sale of the company
- … which means the Founders keep more of the exit proceeds.
We review the acquisition of a virtual company which recently sold for over $100 million in under 60 days.