5 crucial challenges facing business Jason Varney, Partner, Corporate & Commercial,Thomson Snell & Passmore
As the events of the last two years have shown, you certainly cannot predict the future; but you can prepare for it. With the geo-political and social landscape becoming increasingly volatile and fast moving, more than ever, businesses need access to trusted advice and support that can help them rapidly adapt and find a way to thrive in the face of change. Our commercial teams have outlined the key challenges they see businesses facing over the coming year.
1
Supply chain issues
Supply chains have been disrupted by a range of factors including higher fuel prices, the Covid pandemic, Brexit, staff shortages and of course the continuing awful events in Ukraine. Given the uncertainties that follow from these concerns, business owners from across the various industries are naturally looking for ways to better protect their existing supply chains. Management teams would be wise to be extra vigilant when drafting and reviewing their supplier agreements to help guard against some of these issues (as far as is possible).
2
ESG, with a particular focus on sustainability
ESG (Environmental, Social, and (Corporate) Governance) has been high on the agenda for a while, but its importance has been turbo charged by the recent COP26 summit. This is a particularly fast moving area and it is likely that a renewed focus on pushing forward with ESG programmes will quickly filter down to the mid-market and SME space.
3
Industrial and distribution space in high demand
Activity in the sale and letting of industrial and distribution warehousing and cold storage is seeing a period of rapid growth as consumer online demand and requirement for rapid delivery continues to grow. There is currently a shortfall of quality warehousing and logistics space, and so this trend looks set to continue.
4
Director and shareholder disagreements
Many leadership teams have recently had to make difficult and perhaps unusual decisions against a backdrop of unprecedented Government restrictions, unpredictable trading conditions and an uncertain economic outlook. The repercussions of some of these decisions, viewed now with the benefit of hindsight, may well provide a catalyst for disputes between directors and/or shareholders, if they have not already.
5
Increased M&A activity
The Mergers and acquisitions (M&A) boom looks set to continue for the foreseeable future, and while sustained levels of M&A activity are to be welcomed for many reasons, we would urge businesses not to get caught up in the “feeding frenzy” of activity. For those looking to sell or secure investment, it is crucial that the board is clear on their business model and growth strategy; and from a legal perspective, that their “corporate” house is in order. Our commercial teams are always looking one step ahead to help businesses strategise and plan for the future. Please do get in touch should you wish to discuss: info@ts-p.co.uk.
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