Adapting your business to the pandemic: are you up to par?

To describe 2020 as a rollercoaster would be an understatement. In the course of a year we have faced two national lockdowns, a series of local lockdowns and continue to face restrictions on our daily lives. Health and wellbeing is paramount, but naturally the impact on businesses has been unprecedented and never has it been more important to ensure that your business is up to date and compliant with the current regulations and best practice. Doing so not only can avoid claims and unwarranted disputes, but it can protect and maintain the value of your business for the future.

Key things that you should consider are:-

Employees

‘Furlough’ is the buzz word of 2020 when it comes to employment, with many taking advantage of the government backed scheme to retain staff and maintain livelihoods. Ensuring that your scheme is compliant and that communication with staff is clear can avoid claims and disputes.

Premises

With a nationwide-shift to working from home where you can, it is only natural to consider the use of your premises and if it is still required. Many are finding that their employees are equally as efficient from home and prefer the flexibility. If you find yourself in this situation, you should review your Lease to know where you stand on effecting any changes necessary – possibly saving costs in the long-run.

Contracts

With supply chains disrupted and consumers heavily reliant on quick deliveries, making sure that you have robust contracts in place to deal with the impact of lockdown and the changes in how we do business is fundamental.

Governance

Whether you operate a company or are in a partnership, you should ensure that the documents governing the relationship between your business owners are up to date and properly address the ‘what if’ scenarios that, unfortunately, more recently many have been forced to face. How you deal with the incapacity or, in the worst case, death of a business owner can have a substantial impact on its continuity and ability for the business to survive. If you haven’t reviewed your Articles of Association, Shareholders Agreement or Partnership Agreement recently, undertaking this exercise is key to ensure that not only are the relevant concerns covered off, but that the parties clearly understand the documents in order to avoid a dispute in the future.

These are just a few key areas that can have a big impact on your business that you need to consider; this is both in terms of your commercial operations but also in avoiding claims and disputes. But looking at the bigger picture, fundamentally ensuring that your operations are up to date and compliant underpins the value of your business and any potential sale.

As you look to 2021 and the future for your business, you may be considering your own exit strategy. Many businesses do continue to adapt and thrive despite the pandemic and you may find yourself negotiating a sale of your business. Whether this is in 3 months or 3 years’ time, your buyer is going to scrutinise your operations from a commercial, accounting and legal perspective. The question is, will you come up to par? Your offer price would be subject to due diligence and if your buyer unearths legal issues in the course of negotiations, you may find your purchase price reduced or that you become exposed through onerous indemnities to get the deal over the line. To avoid this, you need to ensure that the decisions that you make today ultimately are in your businesses’ best commercial interests, and therefore can still stand to benefit you tomorrow.

The sales process can be daunting, but if you plan your exit and prepare you and your business for the sales process you can address issues in advance and put yourself in the best position necessary and maximise on your sale. Therefore by scrutinising your operations now and ensuring that you are adapting to the pandemic in a compliant manner you are protecting not only your business, but also your own interests in the future.

For information on all our Corporate services, contact Holly Threlfall and our Business Services team on 01604 828282 / 01908 660966 or email BusinessServices@franklins-sols.co.uk.