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The Alternative Investment Market or AIM is the London Stock Exchange's international market for smaller growing companies. It was launched in 1995 and currently has over 2,500 companies on the exchange who have raised a combined £34 billion. Taking a business public is a huge task with financial as well as considerable legislative considerations. AIM was created to allow smaller businesses access to equity funding without so much regulation and whilst the exchange has provided a stepping stone to the main exchange market it doesn't have to.
AIM has a large community of stakeholders made up of various market participants. Specialist advisors play a pivotal role in the success of AIM and they include lawyers, accountants and brokers as well as a diverse range of Nominated Advisors known as Nomads. Each company joining AIM must appoint a Nomad. These advisors are specialists in various areas of business, sectors and/or countries and will guide you through the admission process. This includes conducting thorough due diligence on your suitability and pulling in the right expertise from the other stakeholders so as to progress your application. Should you be accepted into AIM your Nomad will remain on hand to ensure you meet your ongoing obligations. This allows you to find not only the money you need but the expertise as well. Other important stakeholders are investors, public relations and investor relations agencies, who along with your appointed Nomad can assist you to make the most of the AIM opportunity.
Joining AIM is not a quick fix solution to cash challenges but rather a strategic business decision based on long term projected growth.
Ideal for:
Medium sized businesses that are seeking expertise and additional funding may find AIM a perfect fit. The assistance and expertise that are necessary to secure in order to join AIM can be very appealing to some business owners.
Return expectations:
AIM is made up of mainly private investors all keen to make money on their investment. The return expectations therefore will vary from investor to investor. You are selling shares in your company on the open market just as you would if you were a large multi-national company. Your investors will simply sell their shares if they do not feel they are receiving a good return on investment.
Advantages:
Disadvantages:
Where to find investors?