Companies across the world are locked down in emergency meetings as we all face the reality of Brexit. While there may be panic in financial markets, other businesses need now to look further ahead and quickly put in place contingency plans to protect their companies.
No one knows what will happen with the intricate arrangements and rules that tie the UK to the EU but it’s probable that the UK will stay in an EFTA/EEA arrangement. Considering this scenario, businesses that trade in EU countries from branches will need to make some changes, and all will continue to be affected by currency fluctuations.
Companies that only have domestic business – especially SMEs – need to consider the effect of more volatility in currency, commodity and stock markets. Imports and raw materials are likely to cost more. However, exchange rates staying low will hopefully incentivise those that do not currently export or sell services abroad to look again at their business and seek new opportunities.
The picture is arguably more complicated for overseas companies that invested in setting up subsidiaries in the UK on the strength of using it as a base to trade with Europe. Those with little reliance on manufacturing or services delivered from the UK will no doubt be considering partial or total relocation.
At ICC – International Corporate Creations, we didn’t want Brexit, but we’re grasping reality. We can help your company plan and decide your next steps. Whatever your business or location, talk to us for constructive and clear insights on UK and overseas business growth and prosperity.
by ICC team, ICC – International Corporate Creations