Is Your Company Suitable for an AIM IPO?

Quantitative Criteria

• Generating at least £2 million of annual revenue
• ‘Growth oriented’, defined as growing revenues and/or profits by at least 20% per year
• Minimum opening market capitalisation of £10 million
• Doesn’t necessarily have to be profitable but must have a very clear path to profitability
• Valued using 5-year DCF model, revenue multiple, EBITDA multiple and/or P/E ratio

Qualitative Criteria

• Outstanding management team with a demonstrable track record
• Solid Board of Directors, or the ability to formulate one during the IPO process
• Willingness and ability to be subjected to an appropriate level of due diligence
• Sound internal controls and good corporate governance, or willingness to put in place

Other Criteria

• Reasonable valuation expectations, taking a 3 - 5 year view where the IPO is the beginning
• High quality professional advisers, companies are judged by the company they keep
• Appreciation of the obligations an AIM-listed company has to all stakeholders