Brexit: Dawn of a new era or the beginning of the end?
We recently conducted a survey of our contacts in the professional services sector to capture the views of them and their clients on how a possible Brexit could affect them - and the results show some interesting findings.
35% of respondents say a Brexit will have a negative impact on the availability of finance to their clients, with only 6% saying it will have a positive impact. 57%, however, think it will have no impact at all.
When asked about the cost of financing to their clients, 54% consider a Brexit will have a negative impact and 9% think it will have a positive impact. 37% say there will be no impact.
Half of all respondents expect there to be no impact on the working capital efficiency of their clients; 35% say the impact will be negative and 9% say it will be positive.
56% of respondents believe a Brexit could result in more stressed or distressed businesses within their clients’ sectors, while 6% think there will be fewer and 33% think there will be no effect.
When asked how a Brexit will affect the tax paid by their clients, 33% of respondents say that it will increase the rate while 48% say there will be no change. When asked about the burden of regulatory compliance facing their clients, half indicated this will be reduced and almost a quarter say there will be no change.
The results revealed that some respondents are considering changing their business or legal entity model in the event of a Brexit, but there are also a number adopting a ‘wait and see’ approach.
From a personal perspective, as opposed to corporate, opinions were split. 50% of respondents believe a UK exit from the European Union will have a negative impact and 41% believe it will have a positive impact. The rest were unsure or believe it will have no impact.
Interestingly, similar to our survey of the UK financial services industry, a number of respondents’ personal stand point differs from their corporate opinion on whether the UK should remain within the European Union.
With only hours to go until the polls open, whichever way the electorate votes, the only certain thing is that we won’t know the outcome until the early hours of 24 June.