- VCTF launched a comprehensive training program
- The program is expected to significantly improve
- This ensures transparency and comparability
Ghana is taking a major step to attract international investment in its private equity and venture capital (PE/VC) space. The Venture Capital Trust Fund (VCTF) launched a comprehensive training program to equip professionals with valuation skills that meet international standards.
Addressing the Valuation Challenge
Traditionally valuing companies listed on stock exchanges is a relatively straightforward process. However, for privately held companies, which are the bread and butter of PE/VC, determining an accurate value is more complex.
The VCTF program tackles this challenge by providing participants with the tools to assess a company’s true worth, considering both tangible and intangible assets. This includes methods for valuing intellectual property, brand recognition, and future growth potential, which can account for up to 90% of a company’s value.
Importance of Standardized Practices
“Ghana is going global,” says Percival Ofori Ampomah, General Manager of VCTF. As the PE/VC sector attracts more foreign investors, standardized valuation practices become crucial. This ensures transparency and comparability, allowing investors to make informed decisions.
Benefits Beyond Investment
Accurate valuation goes beyond just attracting investment. It also plays a vital role in mergers and acquisitions (M&A) activity, which is on the rise in Ghana. Dr. Bennet Kpentey, a valuation expert involved in the program, emphasizes, “Getting the valuation right is very important” for successful M&A deals.
Sustainable Growth for Ghana’s PE/VC Sector
By equipping local professionals with the necessary skills, the VCTF program aims to build trust with international investors and foster long-term growth in Ghana’s PE/VC sector. This will not only unlock new funding opportunities but also empower local businesses to thrive in the global market.
The program is expected to significantly improve Ghana’s PE/VC valuation practices, aligning them with international standards. This, in turn, will enhance investor confidence and drive sustainable growth in the sector.
