Deals Review – July 2015

Wednesday 15th July 2015

In partnership with the Business Desk, several of our experts will comment on significant deals every month. For July our corporate partner, Jonathan Asquez, looks at the consistent flow of activity on the Alternative Investment Market (AIM) and how it is encouraging to see a strong showing from Yorkshire advisers across a range of transactions.

The benefits of a listing can be significant for the right business: the ability to raise long-term capital, providing an exit or partial exit route for shareholders and a greater public profile and all that brings are a few of them. A prominent example of when it works well was the float on the Main Market of Card Factory in 2014, a business which for so many years has been a phenomenal success story.

Conversely, a listing for a business which through subsequent events becomes less attractive to investors or is disengaged from its shareholders can be disastrous.

AIM activity has been buoyant over the last few weeks kicking off with the AIM admission of Gear4music and Fishing Republic.

Next was the admission to AIM of Gateley, which stole a march on other firms thinking about a listing by being the first law firm to do so. It will be an interesting story to follow. The corporate team at Gordons was delighted to advise the shareholders of Inspiration Healthcare on its reverse takeover by AIM-listed Inditherm plc, the enlarged entity now trading as Inspiration Healthcare Group plc and seeking to capitalise on those factors which make a listing an attractive option.

All of this serves as a timely reminder that a listing should be considered by any business reviewing its exit or growth strategy (or both) even if ultimately it is not suitable for all.

Previous deals reviews: