Comparison to VC/PE Financing & Banking

The best way to continue to finance a privately held business is often simply the same way in which it has historically been financed.

The Alternative Investment Market (AIM) of the London Stock Exchange (LSE) is competitive with, and complementary to, VC/PE financing and significant banking facilities

Benefits of listing on London's AIM

• Diversifies the shareholder base across many large institutional investors with deep pockets
• Allows management to retain operational and Board-level control
• All other things being equal, valuation on London's AIM is higher because of liquidity
• Provides a liquid currency in London AIM-listed shares for acquisitions
• Bolsters confidence with customers, partners and suppliers
• Helps attract, retain and incentivize employees and the Board with shares and/or options
• Establishes a publicly-derived market value as a starting point for acquisition discussions

Benefits of VC/PE financing and significant banking facilities

• Less time consuming
• Less expensive in terms of transactional costs
• No regulatory burden, other than perhaps debt covenants
• Strategic input from, and access to a network of contacts with, some VC/PE firms

Complementary aspects

• VC/PE firm exits via London AIM IPO
• VC/PE firm either can’t or doesn’t want to fund the next stage of growth and uses AIM
  • Exits in 1 - 3 years as part of an organized secondary offering on London's AIM
  • Or holds London AIM-listed shares and continues to help the company grow to $500 million for a dual or primary listing on NASDAQ
• Swap debt for London AIM-listed equity to deleverage; reducing risk and interest expense
• Optimize the capital structure (WACC) with London AIM-listed equity sitting alongside debt