Programme Objective
The course aims to provide participants with a comprehensive understanding of the valuation methodologies and best practices for venture capital (VC) portfolio companies and preference shares under FRS 109, AICPA PE/VC Accounting and Valuation Guide, and International Private Equity and Venture Capital (IPEV) Valuation Guidelines. 

Participants will gain the knowledge and practical skills necessary to perform and review valuations in compliance with relevant standards and industry best practices.

At the end of this course, you will be able to:

• Determine the appropriate valuation techniques based on the company's lifecycle stage, recent fundraising transactions, exit proximity, financial health, data availability, and market conditions;
• Apply valuation methodologies specific to venture capital portfolio companies, including the Current Value Method (CVM), Option Pricing Method (OPM), OPM backsolve and Probability-Weighted Expected Return Method (PWERM);
• Analyse complex capital structures and allocate value to different classes of shares based on their various rights and features; and
• Implement calibration techniques in accordance with IPEV guidelines and AICPA Accounting and Valuation Guide.

Programme Outline

• Overview of Venture Capital Valuation Framework 
  • Introduction to FRS 109 requirements
  • Fair Value hierarchy and concepts
  • IPEV and AICPA Valuation Guide principles
  • Calibration requirements and implementation
• Understand Complex Capital Structures 
  • Types of securities in VC investments
  • Key features of preference shares (economic and control rights)
  • Liquidation preferences, conversion and participation rights and their impact
  • Real world M&A case study and examples
• Current Value Method (CVM) 
  • When to apply CVM
  • Step-by-step implementation
  • Case studies and practical examples
• Option Pricing Method (OPM) and OPM backsolve
  • When to apply OPM and OPM backsolve
  • Step-by-step implementation
  • Black Scholes parameters & assumptions and sensitivity analysis
  • OPM Backsolve technique
• Probability-Weighted Expected Return Method (PWERM) 
  • Scenario development & Probability assessment
  • Hybrid methods (OPM/PWERM)
• Practical Implementation Challenges 
  • Stale Fundraising Data
  • Control and marketability discounts
• Case Studies and Exercises

 
Training Methodology
Lecture style with case studies, examples, and exercises
 
Closing Date for Registration
1 Week before Programme or Until Full Enrolment.

Intended For

This course is designed for investment professionals in venture capital and private equity firms, as well as fund managers responsible for portfolio valuations. It is also suitable for auditors reviewing unquoted investments in venture capital firms, valuation specialists, financial advisory professionals, and finance professionals involved in financial reporting of venture capital investments.