Nominated Adviser
Definition
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. Before admission, the Nomad assesses whether the company is appropriate for AIM, guides it through the admission process and the preparation of the admission document, and takes a view on the business, its management and its readiness for public ownership. After admission, the role continues: the Nomad advises the directors on their ongoing obligations under the AIM Rules. The requirement is continuous rather than a one-off. A company that loses its Nomad has its shares suspended from trading, which is why the relationship is treated as a standing appointment rather than a transaction mandate. Worked example: a technology company considering AIM appoints a Nomad early in its preparation. The Nomad reviews the business, its board and its financial track record, works alongside the reporting accountant and the lawyers, and proceeds only once satisfied that the company is appropriate for the market. Because the admission document describes the business, its risks and its key assets, the Nomad will expect the company to be able to explain the assets that drive its value, including intangible assets that do not appear on its balance sheet. Contrast: the Main Market equivalent at IPO is the sponsor, which a company seeking a listing in the equity shares (commercial companies) category, ESCC, appoints for its admission.
Complementary Terms
Concepts that frequently appear alongside Nominated Adviser in practice.
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.
The process of offering shares of a private company to the public for the first time through a stock exchange listing. An IPO is a major exit route for venture capital and private equity investors, and requires extensive preparation including financial audits, regulatory compliance, and valuation.
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.
The comprehensive investigation and analysis of a business prior to an investment, acquisition, or partnership. Due diligence covers financials, legal, commercial, technical, and operational areas, and increasingly includes assessment of intangible assets and productivity metrics.
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 management presentation is the session, and accompanying deck, in which the leadership of a business being sold presents it to a serious buyer during due diligence. It goes beyond the information memorandum: management talk through the strategy, the numbers, the customer base, the team and the growth plan, and answer the buyer's questions directly.
The eXtensible Business Reporting Language, a standardised digital format for the exchange and analysis of financial and business information. XBRL is mandated by regulators in many jurisdictions for filing financial statements and enables automated analysis of intangible asset disclosures, impairment charges, and productivity metrics across large datasets.
A change of control occurs when ownership of a company passes to a new party, as it does on an acquisition. The term matters in M&A because many of a business's contracts contain change-of-control clauses that are triggered by the sale: a customer or supplier contract, a lease, a licence or a loan may allow the other party to renegotiate or terminate if the company changes hands.
Further Reading
Startup IPO Guide: AIM vs Main Market
How AIM and the Main Market differ for a UK growth company, including the advisers each route requires.
Read more →Related FAQ
How do venture capital investors evaluate your pitch?
VCs evaluate pitches across five dimensions: team (credibility, track record), technology/product (defensibility, strength), market (size, growth, timing), business model (unit economics, scalability), and traction (customer, revenue, engagement).
Read full answer →What is a term sheet and what does it commit both parties to?
A term sheet outlines investment terms (valuation, amount, rights, protections) and is usually non-binding except for exclusivity, fee payment, and confidentiality clauses.
Read full answer →What is due diligence and what documents do investors typically request?
Due diligence is investor verification of your claims: they request cap table, financials, contracts, IP documentation, background checks, and customer references to validate your story.
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