London Stock Exchange: AIM

There are a number of benefits of joining AIM. The market can be a useful source of finance for business growth and can assist companies in raising their profile. Joining AIM can assist your company through providing:

• access to a diverse range of investors - the opportunity to raise growth capital to enable your business to achieve its growth and innovation potential within a balanced regulatory environment
• increased visibility and profile with key stakeholders, including customers and suppliers - which can aid access to global markets
• access to a knowledgeable advisory community experienced in working with growing businesses
• the ability to encourage employee commitment through offering share schemes to staff members
• placing an objective value on the company's business
• increasing the company's ability to make acquisitions, using quoted shares as currency
• creating a market for the company's shares, helping to broaden the shareholder base

How is AIM a relevant source of finance for small and medium-sized companies?

If you are a smaller, growing business seeking finance for development and growth, AIM could be an appropriate source of finance for you. For example:

• The AIM entry criteria are tailored to smaller, growing companies.
• There is no prescriptive minimum entry size and/or trading history criteria.
• Shareholder approval is only required for the most fundamental transactions - a reverse takeover or disposal resulting in a fundamental change of business.
• Tax benefits - AIM shares have tax benefits for investors. Tax reliefs available can include inheritance tax and qualification for inclusion in Enterprise Investment Schemes and Venture Capital Trusts.
• More appropriate costs - the costs of joining AIM may be more suitable for smaller companies than those that might be incurred by listing on the Main Market or obtaining debt finance such as a bank loan.

For further information see London Stock Exchange guidance on AIM.