The chart below highlights some of the key differences and benefits of our strategy versus an investment by most standard private equity firms
| AIM's Structure Can Offer: | Traditional Private Equity Buyout Provides: | |
|---|---|---|
| Yield | 10-15% tax-deferred cash yield | No current yield |
| Cost of capital | Low cost growth capital via initial public offering | Very high cost of capital until sold, then trapped in C-Corp |
| Leverage | Low leverage (<3x EBITDA) for operational flexibility | High leverage (4x-6x EBITDA) creates high risk |
| Upside Participation | Equity upside alongside AIM | No or limited equity participation |
| Estate Planning | Tax-efficient estate planning | Limited tax-efficient estate planning |
| Operations Control | Operational control for management | CEO and management retain some operational control |
| Brand | Brand and company survive and grow | Company may survive or be broken up and sold in pieces |
| Employees | Employees stay on and grow in responsibility | Significant layoffs and cost cutting |
| Management Focus | Manage business with focus on cash | Manage business with focus on GAAP earnings |

