The Brexit effect – expert insights into how businesses are faring

Nearly two months after the vote, experts at international law firm Taylor Vinters give their insights into how the vote is impacting key industries.  

Matt Meyer, Taylor Vinters’ CEO: “For every expression of surprise at the decision or concern about the short-term volatility in the markets, there are equal expressions of opportunity. There is a lot of detailed analysis of risk and opportunity going on and an overwhelming commitment to get back to positive strategic-led activity as quickly as possible.

“We have seen an immediate uptick in investment work and I doubt the team at number 10 will want to revolutionise the stable legal frameworks that underpin the UK’s attractiveness for investors.”

Patrick Farrant, Partner, Commercial and Technology: “It was widely reported that the UK tech sector was overwhelmingly in favour of remaining in the EU with the main concerns linked to attracting talent and investment. These have been reaffirmed since the vote, but the sector’s strength still offers opportunities.

“Many of our clients remain cautious because of the ongoing market uncertainty, but there is still a desire to get on with things. Since Brexit, we have seen a small upturn in deal activity with those that were put on hold pending the result, given the go ahead.

“There are however, real concerns around funding for fintech and life sciences as well as EU passporting and the current pan-European regulatory landscape, which we continue to monitor.

“Investment in growth-stage tech companies has been mixed. We have seen some funding deals pulled or delayed as a direct result of the vote, but other new funding transactions start up. There are some early stage angel investors and venture capital funds which seem happy to continue investing, but others are holding back on new investments until the position is clearer.

 “In Cambridge, we have seen a mixed picture in recent weeks. The EU funds research grants, including technology firms, with nearly £7bn worth of research funded between 2007 and 2013. There are therefore concerns that the city’s position as a centre of global research excellence could be jeopardised by these potential cuts.

“Another major worry is the impact on skills as the sector relies heavily on researchers from EU member states. One of our clients has 40% of its scientists come from within the EU, so is concerned about how it would maintain its workforce and expertise.   

“On the plus side, Cambridge has an innovation infrastructure which is attractive to the whole world, so the technology and entrepreneurial sector should continue to thrive, if they look not only to the EU, but Asia and the US. And the drop in the pound’s value is likely to generate more interest from overseas businesses in the tech marketplace, including those seeking to both access and acquire world-class technology at a lower price.”

Christine Berry, Partner, Employment: “So far, it is business as usual.  There is no expectation that there will be a bonfire of the employment red-tape that emanates from Europe.  Much of our employment law giving employee protection pre-dates our entry into the EU and is deeply enshrined in UK employment legislation.  This is unlikely to change.

“In the longer term, there could well be some divergence in the application of case law by the courts and tribunals in the UK and those in the EU, but this will take a while to work through.

“From sector to sector, there are different views on the impact of Brexit and no emerging consensus.  The common interest is that of all employers with workforces to manage – managing the here and now.

“Many of our clients have employees located in various different jurisdictions across Europe, the Americas and Asia-Pacific.  They are constantly re-structuring their workforces to respond to the changing demands of their businesses.

“With employment law also being one of the most rapidly-changing areas of law in any event, it’s expected that employers (and their legal advisers) will continue to find entrepreneurial solutions to the pressing HR issues of the day.”

Helen Mutucumarana, Partner, Real Estate: “For those looking to expand, the uncertainty around future funding and lack of confidence in the UK market, has caused some to question their growth plans.

“Companies that were considering moving premises may hold back and remain where they are instead (by extending the term of existing leases or carrying out refurbishment of their premises to maximise space) until the impact is clearer.

“For businesses which have UK offices but are headquartered elsewhere, in the short term, the weak pound means that their UK rent and employee costs are effectively cheaper. For these firms, expansion plans may be brought forward or the sale of the whole business may be enticing to the global market.”

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For further comment or information on any of the issues raised above, please contact:
Anna Marsden, Media Relations at Social i Media: Anna.Marsden@Social-i-Media.co.uk or call 01223 850359
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