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to take some money out of the business have considered this option tend to look at
whilst pushing to take out more later. the Alternative Investment Market (AIM).
Alternatively, you could sell out entirely However, one member cautioned that if
to PE. However, they need to believe you list on AIM and the market cap is below
your management team are running the £100m “no-one trades your stock 12 months
business without your input or must be post flotation which can make getting your
able to bring in a capable management money out very tricky”. Another member
team to replace you. Some PE funds are adds that “it’s hard to sell shares and an
more hands on than others and will put Be prepared to be outright sale by the founder is not on the
someone on the board. They can also more of a public cards until a formal takeover”.
provide access to senior talent, networks figure and for the
and industry expertise. cost of investor The IPO process is expensive and time
relations to influence consuming for senior management who will
IPO your share price. be heavily scrutinized. Partners advise that
The primary purpose of an Initial Public It can be volatile, you need a strong executive board, a simple
as share price
Offering (IPO) is to raise capital for the can be effected model with a strong story, and consistency
company. It raises the profile of the by perception and in forecasting. Some members considering
business to increase demand for stock market trends. this option have been deterred by the
to drive up its valuation. Members who scrutiny and having to report to the market.