The hidden dangers of investing in AIM stocks

AIM

The AIM listing process will trigger a host of structural changes within a company. Richard Shave, director of forensic accounting at BDO LLP, considers the risks.

Floating on AIM can involve making substantial changes to the way that a company is run. The company must be prepared to accept the new risks and responsibilities as well as the required increase in transparency, reporting obligations and compliance with AIM rules. The listing process will often trigger a host of structural and organisational changes within a company. Accordingly due attention is given to budgets and funding considerations, board composition and potentially introducing new non-executive directors. Time and resources will be allotted to establishing new board committee...