There are several reasons why you might consider AIM, but the principal driver is usually the desire to access the capital needed to support future growth.If you have high aspirations for your business, are on the acquisition trail, or if you need capital to support the development of new products or R&D for innovation, AIM can prove to be a great way to access the capital you need. It can also have a significant impact on the profile of your business, not just within the marketplace, but also from an employee perspective too. Businesses that have floated on AIM often experience huge benefits in terms of brand perception. They can be treated differently by customers and suppliers, who perceive them as being more established, with greater integrity and transparency. If you’re an owner of a business with an excellent management team, AIM can also give you the opportunity to realise some of your investment in your business, whilst keeping your team in place to take the business forward.
How do you approach a flotation?Once you’ve decided that an AIM flotation is for you, how do you actually go about it?
The first thing to do is to appoint appropriate advisors to take you successfully through the process. You’ll need a nominated adviser, a broker, accountant, financial PR and a lawyer. Read more AIM-related news articles:
- How to make an Initial Public Offering on the London Stock Exchange in ten steps
- Floating on AIM: What’s the listing process?
- Floating on AIM: Crucial factors to consider
What happens after the big event?So you’ve floated, and you’ve raised the capital that you wanted to. As with any business, the hard work doesn’t stop there. Now you need to deliver the strategy you laid out in your admission document and investor presentations. The good thing is, AIM allows you to get on with it. You are expected to comply with the AIM rulebook, but your nominated adviser and your lawyers will help you, ensuring that you publish your financial results and provide ongoing information on developments to investors to explain both historic performance and your strategy for the future. Making the decision to float your business on AIM isn’t an easy one, and you will need to decide whether it is for you personally, as well as whether it is right for your business. It’s a complex and expensive process, typically costing about ten per cent of the funds you raise, but the long term benefits in terms of how it can help to prepare your business for and to deliver future growth, are palpable. Make sure that you get the right professional advice from brokers, analysts, financial PR advisers, lawyers and accountants to guide you along the way. The support you receive from advisors can dictate the success or failure of your floatation, so it’s important to do your homework, and select an expert team with a successful track record. Andrew Davison is partner and expert in AIM flotations at Muckle LLP.
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