Many Irish firms concerned about Brexit have yet to start planning for it

Talk of Brexit among Irish corporate finance workers is almost as common as weather-related chit chat in Ireland these days. Like most Irish people’s inability to simply acquire the necessary waterproof gear that make living in a wet climate less uncomfortable, the majority of Irish businesses expressing concerns over Brexit have yet to actually start planning for it.

"Now that Article 50 has been invoked, government and industry bodies are taking a much more proactive approach in encouraging Irish companies to plan and mitigate against potential effects of Brexit," says Katharine Byrne, BDO corporate finance partner. "Firstly, companies need to review their supply chains and consider the full impact of customs and duties and the potential for significant time delays," says Byrne. "The result of changes in supply chain will affect corporate financing not just from a treasury perspective but also in terms of working capital and bonding facilities."

Businesses that bank with multiple financial institutions need to be aware of the effect of Brexit on all these existing relationships. Such ties with each, individual financial institution should be examined as quickly as possible so that management can be confident banking support will continue throughout the period of uncertainty, particularly with regard to review of financial covenants and terms of existing facilities.

“International equity funds are also carefully considering investments in the EU v UK markets with an increased number of US buyers now looking to Ireland as its investment base into the EU,” adds Byrne.