Outflows from UK funds have drained investment in AIM stocks
Lowly valuations have made them vulnerable to takeover bids
AIM seen as symbol of UK39;s commitment to startups, job creation

LONDON, Jan 16 Reuters An exodus of companies from London39;s Alternative Investment AIM market is set to accelerate into 2025, even as Britain39;s policymakers try to revive the country39;s capital markets, bankers and financial advisers to AIM companies told Reuters.

Already in 2025, Britain39;s Alliance Pharma agreed to sell itself to asset management firm DBAY Advisors, and online marketing firm Team Internet said it had received takeover approaches from private equity bidders.

This 30yearold segment of the London Stock Exchange was designed to help smaller companies secure capital, with fewer listing requirements than the main market.

But now a growing number of AIM members are considering delisting or putting themselves up for sale as market valuations have slumped and changes in Britain39;s tax rules have made these listings less attractive.

We are seeing an increasing number of AIM company boards who are considering their options, including running a private or public sale process, and particularly at the larger end there is a growing trend for AIM companies to think about a move to the main market to benefit in part from more liquidity, said Marc Jones, a managing director who focuses on MA at Peel Hunt.

UK officials implemented a suite of listing reforms last year…