10 The Alternative Investment Market (AIM).

(a) Discuss the role of the London Stock Exchange’s Alternative Investment Market (AIM).

(b) Lofty Enterprises is a rapidly growing private company which operates a very successful leisure and entertainment business. The company has ambitious expansion plans and wishes to raise £10 million fresh capital to finance its growth:

a listing on the London Stock Exchange’s Alternative Investment Market (AIM)

has been mentioned as a means of achieving this.

As an assistant financial consultant you have been asked to make a presentation to the board of Lofty Enterprises outlining the key factors which the directors will need to consider in deciding whether AIM is appropriate for the company.

(c) Briefly outline one appropriate method by which the company could achieve a listing on AIM.

(d) Discuss the role of a merchant or investment bank in the company’s listing.