AIM loses almost 30 firms as private equity predators circle

Nearly 30 companies listed on London’s junior stock market have been taken over in the past year, with seven going to private equity.

Accountant UHY Hacker Young says 27 firms on the Alternative Investment Market (AIM) have been bought in deals worth £7.8billion.

Seven, worth £5billion of that figure, were backed by private equity – figures that underline concerns about AIM as it struggles to attract initial public offerings (IPOs) while losing others to takeovers. 

Some companies have gone private, blaming low valuations, high costs and red tape.

There are now 669 on AIM, down from 685 a year ago. 

Colin Wright, UHY Hacker Young chairman, said: ‘The interest is a sign the market is functioning well as a shop window. However, the lack of IPOs means there are concerns over the health of the market over the longer term.

‘The high value of deals shows a lot of higher quality companies were taken off the market.

‘Problems could arise if those aren’t replaced by new listings and some of the liquidity leaves the market.’