MICHAEL McATEER
Grant Thornton
Grant Thornton employs c.1,450 people in seven offices across Ireland. Michael McAteer has specialised in all forms of insolvency and corporate recovery.
ACTIVITY As the pandemic hit and the nation’s response developed, our clients needed advice on government supports, how to avail of them and the impacts on their staff, business revenue, returns etc. This led to an exceptional amount of communications, webinars and meetings for our clients, which would not necessarily generate fees but would drive a lot of work. Client engagement at the onset of the pandemic was problematic, from a consulting perspective, as projects initially stalled. However, as remote working became the new normal and clients and staff became more comfortable with technology, we have seen an increase in activity.
SERVICES The pandemic did not adversely affect our audit and assurance services in meeting client deadlines – it was actually a very strong year from a business perspective. For many years now, our teams have carried out audits using software applications developed by our global organisation. This meant that the transition to a remote auditing environment was smooth.
However, the learning experience of our more junior people has and will continue to be impacted until we can get back (safely) to client locations. There is no substitute for working together as a team, collaborating, and learning from each other at our clients’ offices. It’s also harder to truly understand our clients’ business, operations and issues without ‘walking the floorboards’ and interacting with their teams.
BUSINESS SUPPORTS While there is a concern that withdrawal of supports may see businesses fail, I think that unlike the last recession, banks are in a stronger position to support their customers through these issues, and they will have the appetite for restructuring lending terms/covenants with a view of staving off insolvency. For businesses that have a viable
‘There will be more casualties of the ‘stop-go’ economy’
and sustainable business plan in place, they should take comfort in that the Central Bank has been clear in setting out its expectations that ‘the interests of borrowers affected by Covid-19 are appropriately protected’. Therefore, it is critical that businesses who experience financial distress engage with their lender at the earliest opportunity.
Unfortunately, there will be more casualties of the ‘stop-go’ economy we find ourselves in. The hospitality industry in Ireland saw a small bounce during the summer, but the latest restrictions, and an uncertain 2021, will only add further to their financial issues. Government supports and revenue debt warehousing have assisted hotels and the adversely affected ‘non-essential’ retail sector to keep the lights on during this difficult time, helping avoid permanent closure. These schemes, along with repayment moratoriums from financial institutions and landlords, have also played a part in assisting these industries. While financial institutions have been cooperative in facilitating repayments, landlords’ performance in this space is less consistent.
ENTERPRISE For businesses who were well positioned to exploit new channels, we have been helping them with detailed market analysis and route to market supports. A second cohort of businesses acknowledged their need to make changes to enable them to target customers differently. We have helped them to review and optimise their supply chains and operating models to become more agile. Transitioning your route to market from ‘brick to click’ isn’t just about having an ecommerce platform – it is about having all the supporting infrastructure to ensure you can fulfil customers’ needs.