Yolande Brighton is the managing director of Brighton Bestwines plc, a company which supplies the licensed trade. The company has been very successful but has now reached the point where it needs to...

Yolande Brighton is the managing director of Brighton Bestwines plc, a company which supplies the licensed trade. The company has been very successful but has now reached the point where it needs to expand its warehousing capacity if it is to continue growing. The directors have been contemplating applying for a listing on the AIM. The company will issue a further 500 000 shares (it already has 1 000 000 shares in issue). It hopes to be able to sell the shares at around £2.50 each.

The directors have invited you to their board meeting to discuss the flotation. They are keen to raise the finance, but one or two of them are wondering about potential drawbacks to being quoted on the AIM, and they would like you to give them an outline of any possible problems they face.

Required: prepare a list of potential drawbacks for discussion at the meeting.