IPO (Initial Public Offering)

The duration for which an investor retains an investment before exit, typically measured from the date of initial acquisition to the date of sale or IPO. In private equity and venture capital, holding periods typically range from three to seven years and influence the internal rate of return calculation.

A transaction in which a company's existing management team acquires the business, often with financial backing from private equity or debt providers. MBOs are a common succession and exit route, particularly for founder-led or family-owned businesses.

A business in which a private equity, venture capital, or growth equity fund has invested. Portfolio companies receive not only capital but also strategic support, operational guidance, and governance oversight from the fund, with the aim of accelerating value creation and achieving a profitable exit.

An admission document is the disclosure document a company publishes when it joins AIM and no prospectus is required. It is the main record on which investors assess the company at admission, and its contents follow the AIM Rules.

Historical financial information is the past-period financial record a company includes in a prospectus or an AIM admission document when it seeks admission to a public market. It normally covers the last three financial years, or the period since incorporation if that is shorter, and it is either audited or reported on, so that investors can rely on the track record behind the offer.

A nominated adviser, usually shortened to Nomad, is the corporate finance adviser that every company on AIM, the London Stock Exchange's market for growing companies, must retain at all times. A Nomad must itself be approved by the London Stock Exchange to act in the role, and AIM's regulatory model relies on it to act as a gatekeeper for the companies it advises.

A reporting accountant is the independent accounting firm a company appoints to report on its financial information and financial procedures during an IPO. The role is distinct from the statutory audit.

A private equity transaction in which one PE fund sells a portfolio company to another PE fund, rather than to a strategic buyer or through an IPO. Secondary buyouts have become the most common PE exit route, accounting for over 50% of European PE exits in recent years.

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Management buyout vs management buy-in — what's the difference?

In a management buyout (MBO) the existing team buys the business it already runs; in a management buy-in (MBI) an external team buys it and takes over running it.

What is pari passu and how does it affect investor rights?

Pari passu means investors hold equal ranking in liquidation or dividend priorities — no investor class has preference over another, protecting minority investors from founder dilution.

How are intangible assets treated in insolvency and restructuring?

In insolvency, intangible assets are realised at forced-sale values (typically 10-40% of going-concern fair value), with IP, brands, and customer lists potentially sold separately to maximise creditor recovery.