Brexit news – Take action now or you could put your business at risk

EMC Chief Executive Nik Askaroff, the South East’s top dealmaker for the last two years, gives some post-Brexit vote advice to SME owners and directors.

There’s no doubt that the vote to leave the EU is hitting business confidence and performance, so it’s vital that all SMEs include a Brexit checklist on their Board meeting agendas. If you are thinking ‘what Board meetings?’ then maybe you should remember the old adage: ‘if you fail to plan, you plan to fail’.

Despite all of the media hype over the outcome of the referendum and the undoubted challenges that we will all face over the next two to three years, good business leaders will still do good business.

There are really only two words to remember – quality and quantity. Do everything 10 per cent better and do 10 per cent more and you will grow your business.

Review your operations and see where you can work smarter. Review your business development plans and see how you can get in front of more customers, and then make sure that your accounts function is productive and efficient.

It’s not rocket science but it’s amazing how many bosses don’t focus on these simple actions. If you don’t know how, or don’t have the time, shout for help. It’s very true that ‘the fish stinks from the head’. Your business won’t fail because of your staff. It will fail because you have failed to take action or summon help earlier enough!

If you have already had enough of it all then, happily, the Mergers and Acquisitions sector is still active and will continue to be so for the right proposals. The recent EY Global confidence barometer showed strong deal sentiment across all sectors driven by volatility and disruption.

Some sectors will need to be more granular, carefully identifying where and when to invest, but the only sector where acquisition appetite falls below 50% is in telecoms. Otherwise most larger companies recognise that real growth will need to come from acquisitions and the opportunity cost of their cash in the bank is approaching a negative yield – i.e. they have to use it!

Private Equity firms are also sitting on more cash than ever and they will continue to buy and invest in growing businesses. There are now more than 300 PE companies in the UK reputedly sitting on over £1 trillion of funds that they have to invest and use. It’s their jobs, and this pressure and momentum won’t stop whatever the economy does. So if you are thinking of exiting/selling your business in the next one to three years, now is the time to start thinking about and preparing for it.

Here at EMC we have been frantically busy both on the interim business advice side and with M&A activity. In July, we completed three transactions and we have three more heading towards completion in August and a strong pipeline. We have buyers looking for targets and good businesses for sale.

You have heard this repeatedly from me over the last 25 years, but it still runs true and is the shortest business ‘book’ you need to read. Pay attention to the numbers, increase your activity and work smarter. If you can’t do it find somebody who can help you or sell before it’s too late and everything you have worked for over the years falls to pieces.

The two biggest reasons for business failure are misunderstanding the numbers and poor leadership. Don’t let this happen to you.