Daffodil Electronics has grown from a company with £10,000,000 turnover to one w ...

Daffodil Electronics has grown from a company with £10,000,000 turnover to one with a £201m turnover and £18m profit in the last twenty years. The existing owners have put all their financial resources into the firm to enable it to grow. The directors wish to take advantage of a fascinating market opportunity after Brexit but would need to find £50m of new equity capital as the balance sheet is already over-geared (i.e. has high debt). The options are discussed in a relatively uniform way, including flotation on the Main Market of the London Stock Exchange, flotation on the Alternative Investment Market (AIM), and private equity. Write a report to enlighten the board on the merits and disadvantages of each of these three possibilities.