Considerations when joining AIM
The potential benefits and things to consider when joining AIM.
Before joining AIM, your company should carefully consider the issues involved in joining a public market and seek appropriate legal and financial advice.
Joining a public market such as AIM will involve major changes in the way that you run your business, and certain requirements will be imposed on senior management. You should consider the following points:
Cost
The initial costs of flotation can be substantial, and there will usually be ongoing costs of maintaining a public market listing, including the company's fees due to the company's nominated adviser and professional adviser.
Market fluctuations
Your share price can be affected by a number of factors beyond your control, including market sentiment (the general attitude of investors towards price development in a market), economic conditions or developments in the sector, such as increased competition or new competitors.
Responsibility to shareholders
In return for the capital they provide, shareholders in your company will expect the business to deliver value.
The need for transparency
Being in the public domain will lead to increased scrutiny of the company, its performance and its directors. Prompt announcements about new developments will need to be made, whether positive or negative.
Investor relations
To maximise the benefits of being on a public market such as AIM and attract further investor interest in your company's shares, it will be crucial to keep investors informed.
See London Stock Exchange .