Click here to read Brexit: An Extraordinary Disruption - Reflections from the Board Room

LONDON – October 6^th 2016 – Board members are still waiting for the impact of Brexit to hit but now is the time to act, according to new analysis from leading global professional services firm Alvarez & Marsal (A&M).

Building on its research with Henley Business School published earlier in the year (‘Boards in Challenging Times: Extraordinary Disruptions’), A&M analysed the boardroom response to Brexit through a series of interviews with seasoned UK executive and non-executive board directors, as listed below.

This analysis found that despite the likelihood that Brexit will take months or years to play out, there are some sectors already experiencing and reacting to the consequences to the referendum. Notably, the research highlights that some private equity funds, which tended to conduct greater quantitative analysis before the result, are already refocusing new investment into the Americas and Asia – seeing the UK and Europe as “too difficult”. 

Other findings reveal a ‘get on with it’ attitude in the British boardroom, with many directors asking that Brexit not be used as an excuse for delaying business decisions or poor performance.  One board member interviewed said: “The biggest worry in the short term is that it becomes the totem excuse.”

Malcolm McKenzie, Managing Director, Alvarez & Marsal said, “By analysing Brexit using the framework we developed with Henley Business School, it becomes clear that there are many factors yet to be addressed. What is crucial now, is for boards to continue to scan the horizon for the issues that continue to arise from Brexit, without this prohibiting their ability to act and deliver business performance in the meantime. Agility will be key for both the board and executives as they successfully navigate these disruptions.”

“When we undertook our research earlier in the year, one of the core principles identified for addressing a hostile disruption such as Brexit was to ‘generate pace’. No matter what extent your business is affected, boards need to act now – if your business is badly affected, start negotiating with suppliers now. If your business isn’t affected, seize the opportunity to get ahead of your competitors.”

The research defines Brexit as a series of ‘hostile’ disruptions, each with unpredictable knock-on effects for the board to manage. Whilst some of these disruptions have already occurred and been managed by businesses, such as major currency changes, there is more to come with implications for the wider UK economy still to play out. As the Prime Minister outlines the timescales for triggering Article 50, the majority of executives interviewed are focused on building sufficient agility into their businesses and leading successfully through this disruption.

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About Alvarez & Marsal

Companies, investors and government entities around the world turn to Alvarez & Marsal (A&M) when conventional approaches are not enough to activate change and achieve results.

Privately-held since 1983, A&M is a leading global professional services firm that delivers business performance improvement, turnaround management and advisory services to organizations seeking to transform operations, catapult growth and accelerate results through decisive action. Our senior professionals are experienced operators, world-class consultants and industry veterans who leverage the firm's restructuring heritage to help leaders turn change into a strategic business asset, manage risk and unlock value at every stage.

When action matters, find A&M at alvarezandmarsal.com

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About Henley Business School

As the UK's first business school established in October 1945, Henley has distinctly addressed the challenges faced by leaders and managers in the private, third and public sectors. With an international presence in countries as Finland, Denmark, Oman, Dubai, South Africa, China, Henley Business School has focused on growing leaders across all sectors across the world to realise their full capability. The research undertaken by faculty on the nature and qualities of world class leaders is globally recognised. Thus the joint study with Alvarez & Marsal further adds to the unique position held by Henley concerning the development, coaching and mentoring of senior managers and public servants.