London AIM IPO update still quiet (July 2009)

With there being no IPOs on the AIM market since December, two deals were closed just before the end of the first half of 2009. One was a vulture property fund that raised £220 million and the other was a small specialty finance company that raised £2 million. All very different from even a year earlier 31 deals. It is now quite some while since technology IPOs were a common feature of the AIM market.

It has always been the case that M&A has by far been the most common route to liquidity for shareholders in private software and IT service companies. Fortunately in software, M&A is part of normal business. Software companies are still profitable and generating cash. With dividend payments being relatively modest, many mid-market M&A acquisitions can be funded without resorting to external finance. The drive to acquire new technology, expand into new territories, or acquire clients, remains. M&A deals continue in marked contrast to the public markets such as AIM.

Posted by , on 29 July 2009
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