Is the coronavirus pandemic making your company experience financial problems? Are having a hard time concluding deals in the EU & US? Well, you’re not alone. There’s hardly a business in the world that hasn’t been affected by the COVID-19 calamity. Some experts say that if the current situation continues to develop as it is (or takes a turn for the worse), the consequences for global business may be even more disastrous. So, what should entrepreneurs worldwide do to weather this perfect storm?
What Should be Done?
Ensure the maximum level of security for your employees:
- come up with a contingency plan addressing financial risks connected to the COVID-19 pandemic;
- prevent the spread of the coronavirus disease by stocking up on personal hygiene products;
- encourage your employees to stay at home in case they get sick; make it a rule that every employee diagnosed with coronavirus work remotely for 14 days;
- review & revise your PTO policies (including signing an SAP in the EU & US during the COVID-19 pandemic).
Company owners should determine whether COVID-19 is a force majeure circumstance & include a corresponding clause in upcoming contracts. It’s also important to determine whether the coronavirus pandemic can trigger non-compliance with agreements (especially when it comes to the conclusion of contracts under English law in the EU & Great Britain).
- Provide the necessary infrastructure to make it possible for your employees to work remotely & communicate with customers & suppliers.
Examine the supply chain
Business owners should also be prepared for supply chain disruptions, especially if their business relies on suppliers from China. They should also retain services of qualified legal professionals who can advise them on the regulation of contractual agreements during the COVID-19 pandemic.
Those planning on signing an M&A deal in the US or EU should avoid face-to-face meetings & rely on videoconferencing instead. Buyers should pay particular attention to:
- supply chains;
- infrastructure opportunities;
- confidentiality of data;
- licensing issues;
suspension/termination of agreements as per force majeure or other clauses;
insurance policies related to pandemics & epidemics.
- Sellers should make sure that they have in place:
- robust risk management programs;
- infrastructure for remote work;
- Monitor the situation in the worldBusiness owners are recommended to make the necessary preparations for any possible outbreaks of the coronavirus disease & quarantine measures taken by the governments of the affected countries.
And that wraps up our short review. If you need more information on concluding agreements in the EU during the COVID-19 pandemic, do not hesitate to contact IQ Decision UK. Our legal advisors will help you assess the risks involved & determine what legal measures need to be implemented for the protection of your business during the coronavirus pandemic.