The decision stage
Choosing whether to float your company on AIM may be one of the most important business decisions that you will make as a company owner, shareholder, or Director. There are considerable benefits to floating on AIM, however there are also some drawbacks. It is therefore essential that the decision to float is taken based entirely on what is right for you, your shareholders and your company’s unique circumstances.
What is the first step in the decision process?
In order to weigh up the benefits and drawbacks of flotation on AIM for your company, it is beneficial to conduct an AIM flotation feasibility exercise first. An AIM flotation feasibility exercise may be undertaken by your company, if you have the financial and stock market expertise in house. Alternatively, Holland Bendelow can undertake the project on your behalf.
It is important that your company has an up to date business plan and future projections prior to the commencement of an AIM feasibility exercise. If you have not already prepared these documents, we can prepare them for your company.
What makes a successful AIM company?
Harvard Business School’s research found that the key to a successful flotation is in the time that is spent prior to the flotation in preparing both the company and the management team for the process.
How to prepare?
There are no hard and fast rules as to what size, sector or characteristics a company needs to have for a successful flotation on AIM. Success may also, to a degree, depend upon commercial and financial factors. However, companies considering joining AIM should consider the following;
- Commission a flotation expert to undertake an AIM feasibility exercise first
- Ensure the company has good financial controls
- Put accurate management reporting systems in place
- Do the company’s products/services have good growth potential, and are patents/ intellectual property rights in place?
- Is the management team capable of delivering the company’s key objectives?