Virtual Companies are Recreating the Technology Industry

BY Dave Rowat

Virtual Companies are Recreating the Technology Industry

Presentation to the UBC Sauder School of Business

January 20, 2020.

 

Virtual companies have no head office and few physical assets.  They only exist online. Employees communicate online from wherever in the world they happen to be.

This new work structure seems nebulous, but in fact, virtual companies are proving to be more valuable in a technology company exit than conventional bricks and mortar companies.

HIGHLIGHTS OF THE NEW ADVANTAGES CREATED BY VIRTUAL COMPANIES

Virtual companies:

  • Are easily established, efficiently financed, and quickly scaled
  • Are creating new, leaner corporate structures
  • Can nimbly exploit new opportunities
  • Are more profitable
  • Minimize corporate income taxes, and taxes on the sale of the company
  • Are worth substantially more to buyers and sellers
  • Provide a better work-life balance, especially for women, and are better for the environment
  • Attract the best workers worldwide, and supersede geographic boundaries

We review the acquisition of a virtual company which recently sold for over $100 million in under 60 days.