The date in which the UK is due to leave European Union is quickly approaching. Less than 100 days remain until Brexit is likely to occur. David Van Dessel, a partner at the consulting group Deloitte, stated that if the UK ends up crashing out of the EU without a deal it could have a “material impact” on company bankruptcy levels throughout Ireland.
According to Deloitte, the impact of a hard Brexit on Irish businesses may not be apparent until the next year. In other words, the material impact will be more likely to be a depicted in 2020 insolvency statistics.
Van Dessel also discussed how directors are veery slow to ask for external assistance when their business is in the midst of financial troubles, especially family businesses. Family companies tend to deal with issues more privately. Generally, when a company is in trouble the common approach is to sell more, but the problem is normally much greater than lagging sales.
For companies directly effected by Brexit, the financial impact may be quick after implementation, but there will be a …