LEADERSHIP INSIGHTS

Since its launch in 1995, AIM has become one of the City's greatest successes, but the global recession hit this market hard. As financial markets crumbled, investors withdrew from AIM and by the end of 2008 its share index value had plummeted. So what does the future hold for AIM? If, as economists are suggesting, we are seeing greater stability in financial markets, will AIM rebuild itself as the place to be for growing companies looking to raise capital? What will the market look like post-recession? And what will companies joining AIM be looking for?

Companies looking to join the AIM market now should be asking themselves if the benefits are still there. As Brendan Hynes, CEO, Nichols plc explains: "The AIM market was traditionally seen as a place for smaller companies to raise funds for expansion or seek a partial exit, without the inherent costs and complexities of joining the full list. Larger investment funds had restrictions regarding the size of companies they could hold shares in so AIM was attractive for smaller, quality companies with good business plans which fell under the radar of larger fund managers. The tax advantages of Taper and IHT were big motivators, but these have been steadily eroded over time.

Hosting the 2012 Olympic and Paralympic Games in London will present many opportunities for UK organisations. For some, these will be directly commercial, such as winning supplier contracts for the various projects needed to host the event. But there will also be benefits such as the chance to increase brand visibility when Britain moves into the international spotlight...

Access to affordable, long-term sources of finance has been a major challenge for organisations in the current downturn. But as banks continue to levy higher charges on facilities, organisations need to give serious thought to the implications of these new costs on long-term growth and their financing options. 

The key question is whether increased fees and charges from banks will continue indefinitely. Or if the trend towards higher and additional charges will subside when the economy becomes more stable. In some ways it's a catch-22. Over lending to businesses and individuals in the boom years clearly contributed to the economic turmoil in which we now find ourselves. However, finance and investment is now needed so that organisations can position themselves for growth and fuel economic recovery.