After a healthy upturn in the corporate/commercial legal marketplace in 2015/16, the referendum of June 2016 delivered Brexit. The High Court has of course recently ascertained the government alone does not have the authority to trigger Brexit and it must wait for a Parliamentary vote. The government will be appealing the decision in January….  time will tell.

Whilst there is a huge measure of “wait and see”, we do not know if or when Brexit will happen, and what it will mean for the UK.   We can however provide insight on how it has and may continue to influence North West SMEs from a legal perspective.

Immediate Impact

On a positive note, the referendum result has not had a negative impact on the FTSE in general terms.  However, the pound has dropped against the Euro and the Dollar.

How it has directly affected you depends on your business structure. If you run a business that exports goods from the UK the fall in the pound may make you more competitive. However, if you are importing raw materials or component parts from outside the UK you may suffer increased pressure as a result of the weaker pound.

Particular care needs to be taken if you are part of a supply chain and under a lot of pressure to deliver goods at a particular price.

It is more important than ever that you review your contracts and make sure you are protected.

Short-term

The short-term upside of the delayed impact has been that SMEs/OMBs have continued to trade with relative confidence and the North West M&A market has continued to thrive, unabated.  If your business relies on private investors this may cause difficulties as investors may choose to put new investments on hold which could damage the cash flow of your business.

If your business relies heavily on EU funding you will need to make provision for if/when this funding disappears. The expectation is that the government will step in and assume an equivalent role but we do not know to what extent they will assist and it is important to consider alternative funding options to reduce any risk.

Long-term

There is substantial conjecture on the agreement we have with the EU going forward. From a legal perspective, most EU laws do not automatically apply in the UK and have to be implemented by UK legislation. As such it is unlikely that the government will revoke any EU laws in their entirety although some parts may be challenged.

Companies that continue to trade with Europe will be forced to comply with the EU rules and regulations in any event.

If you are committing to a long-term contract be aware that Brexit could have an impact on its profitability. As such we recommend you consider the termination provisions in your contracts carefully.

From a corporate perspective, the law regulating companies is unlikely to change and if it does it will remove some of the more restrictive provisions that have been placed on companies through EU legislation.

The sale and purchase of companies at SME level is unlikely to be materially affected, indeed a weaker pound might lead to an increase in take overs by foreign companies.

There may be increased due diligence reporting to focus on the impact of Brexit and there maybe some added difficulty in securing funds given the market fluctuations but these are all challenges that can be overcome.

In conclusion

At this preliminary stage, it is not the gloomy scenario some commentators would like you to believe and, with certain precautions, we believe your business can continue to grow post-Brexit.

Testimonials

Read what our clients have to say...

View All

Excellent experience start to finish – always very responsive to any queries and the turnaround on the property I was buying was very quick, even in the busy time leading up to stamp duty deadline. Jenny was always very helpful and went above and beyond to close on a short timescale.

Ben Armitage

“Very approachable, practical solutions to problems, but most of all very responsive which I personally think is very important because if you need help, you need it quickly, or at least to know someone is looking at it for you”.

Joanne Rowe, Finance Director, Greater Manchester Chamber

“Always able to contact, very approachable, friendly and professional”

Nives Feely, JAM Recruitment

“I believe I have been able to establish a professional working relationship with everyone I have come into contact. Importantly, I sense the relationships which have been established give me the confidence that I can make contact with Davis Blank Furniss at any time and on any matter. I would also like to express my thanks to the very impressive “gatekeepers” who work in reception, not only for making me very welcome, but also for their professionalism”

Bill Pryke, CEO, Chartered Institution of Civil Engineering Surveyors

“Thank you for your efficient and friendly help throughout this process. We have had it easy but your approach has been part of that”.

Robert Amsbury (Conveyancing Client)

“I would like to take this opportunity to thank you personally for the ongoing support and assistance the firm has offered to our parents over the years. I hope also that we may be able to call on you if necessary in the future.”

Valerie Fisher (Probate Client)

“Jo always provides great service, understands our needs and delivers on her promises. Our needs are relatively simple but the complexity arises out of the volume of work and short time frames, Jo always delivers.”

Peter Fernandez, Corporate Director at Royal Bank of Scotland

“A big thank you to all who dealt with my wife’s claim… We would not hesitate to recommend Davis Blank Furniss to anyone that may be in a situation like we have been…”

Anon (Personal Injury client)

“Before putting my case in Kirsty (Morbey)’s capable hands I’ve met a couple of other solicitors. None of them listen to me as intently as Kirsty and showed me as much empathy and understanding as she did. Simultaneously she was able to look at my case from legal perspective, explain all the options and follow each of our meetings with written summary of the discussed matters (in timely manner). Her advice was invaluable and led me to successfully ending the case matter (hopeful for good). I’m forever grateful for he work and would definitely recommend her to anyone looking for reliable, knowledgeable and committed solicitor”.

Anon (Family client)
5 star service

Our Manchester office is rated 5 stars on Google