The business known today as the Virtalis Group of companies was originally set up in the late 1980s as the UK's National Advanced Robotics Research Centre in Salford, supported by the University, the DTI and a range of industrial shareholders. After a successful period of developing both hardware and software products, including the world's first tactile feedback glove systems for VR and telepresence applications, the Robotics Centre became commercial, launching VR Solutions Limited. In 1997, VR Solutions merged with Virtual Presence Limited ('VP'), a London-based hardware supplier, a significant move as it combined the technical excellence of the software development and consultancy teams with the necessary hardware to deliver complete solutions. Seen as one of the foremost interactive visualisation organisations in the world, the Group was purchased by the Nasdaq quoted Muse Inc. in order that further growth could be adequately funded. All went well initially, but US cash-flow difficulties led to a continual drain on the resources in the UK. Chapter 11 administration for the VP Group led to insolvency following almost inevitably. Recognising the value inherent within the people and the products and services, and noting the market's poor appetite for investment, particularly in the IT and technology sector, the only way forward was to carry out the buy-out, protecting people's jobs and keeping all the intellectual property together. This paper describes the buy-out process and the challenges involved.