Now that the news of the outcome of the Brexit vote has had time to sink in, urgent consideration should be given by senior management teams to the immediate implications for their business. Despite the hype, the largely unexpected nature of the outcome has meant that few UK businesses had any contingency plans in place. It, therefore, follows that management should be assessing the impact of the decision on their business as a matter of urgency.
It is likely that primary considerations will depend on whether your business has significant levels of trade with countries in the EU and also on the nature of this trade, whether supply chain or sales and whether goods or services. An assessment of any likely initial impact is a necessary essential starting point facilitating a focus on any necessary immediate damage limitation. Examples of how these threats may manifest themselves may include the deferment of a decision to purchase your goods by your customers due to the current uncertainty of the long term effects of leaving the EU, short term difficulties in continued procurement of raw materials or supplies and the weakening of the pound.
In every case, Companies will need to identify their optimal response and evaluate the effect on their current financial position. Such decisions will initially need to be made in an environment of both a lack of knowledge of Government policy post-Brexit and in ignorance of the possible outcomes of the necessary negotiations with the EU within the exit strategy. In this situation, most small and medium-sized companies will tend to defer long term investment plans. Even companies which perceive themselves as having little in terms of dealings with the EU will suffer the effects of changes in the prospects of both the UK economy and the particular market sector in which they deal.
If you feel that your company may encounter difficulties in the short term responding to the consequences of the referendum decision, or if your company is already experiencing financial difficulty, it is never too early to seek professional advice. For an initial consultation at no cost, contact us.