Yes. Just put the VM on the external storage. Everything will work just fine. VMware and Parallels are great for that. I have lots of VM's on USB sticks that we give to employees for testing, etc.
2014 X5 xDrive50i ZMM - Alpine White/Mocha (Mods In Progress!)
2014 Jeep SRT - 2013 Tesla Model S P85+ - Bimmerpost Featured
2013 F10 M5 - 2012 550 xDrive - 2011 M3 ZCP