Brexit brings uncertainty – when to do a Brexit due diligence?
On 29 March 2017, the United Kingdom triggered Article 50 of the Lisbon Treaty, kick-starting a two-year countdown to formal exit from the EU. The UK will cease to be part of the EU on 29 March 2019, unless there is an agreement between the UK and the EU-27 to postpone the Brexit date.
Brexit does not change Norway´s relationship to the EU. However, the UK´s withdrawal from the European Union will have considerable consequences for the relationship Norway and Norwegian businesses have with the UK.
Experience shows that doing business during periods of economic or political uncertainty can give rise to unique challenges.
Norwegian companies doing business in the UK and/or with UK companies should therefore consider whether to take any initiatives to meet these challenges.
Brexit will have significant practice and sector impact. It will affect, inter alia, contracts, commercial/trading law, competition, financial services, M&A, tax, employment law and intellectual property.
You should consider a Brexit DD if your company inter alia:
- Has subsidiaries in the UK
- Has exports to and/or imports from the UK
- Has existing contracts involving UK companies
- Relies on UK workers or service providers
- Has intellectual property rights in the UK
- Relies on financial services by a UK based provider
- Has transferred personal data to the UK
- Has any potential UK M&A targets or is a target from a UK company
Our Brexit team has in-depth knowledge of the legal and economic implications of Brexit and advises businesses on the impact Brexit may have on them. We are well placed to advise on how to run a Brexit DD and then implement recommendations flowing from that exercise.