ITALY Law and Practice Contributed by: Alessandro Corno, Luca Magrini, Pasquale Mosella and Rocco Pugliese, Alma LED
Alma LED Via Principe Amedeo, 5 20121 Milano Italy Tel: +39 02 6556721 Email: info@alma-led.com Web: www.alma-led.com
1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General Over the last 12 months, PE investors on the Italian market adopted a cautious but strategic approach. A reduced number of large-scale buyouts was accom - panied by a certain activism driven by specific trans - action types and sectors. The market has seen an increase in bolt-on acqui - sitions by PE portfolio companies which acquired smaller complementary businesses with a view to consolidating market share, achieving synergies and creating value in a manner that allows for higher risk differentiation compared to large, standalone transac - tions in an uncertain macro-economic environment. There has also been an increase in “P2P” transactions where listed companies with depressed valuations become attractive targets for PE sponsors. “Club deals” and co-investments, especially in larger transactions, have also become common, with PE sponsors and other financial investors joining forces to share equity ticket and associated risks. In general, the market proved to be more selective and price-sensitive, still with a strong appetite for high- quality assets with growth potential and sufficient financial resources to pursue them.
1.2 Market Activity and Impact of Macro- Economic Factors Several sectors were active in the Italian PE market in 2025. This is mostly because they proved resil - ient or demonstrate potential to grow despite com - plex global conjuncture. The technology and digital sectors, especially software-as-a-service (SaaS) and cybersecurity, still draw sponsors’ focus. The healthcare sector, which includes medical devices, diagnostics and care for the elderly, is still favoured because of demographic trends and the growing need for specialised services. Investors are also looking at the consumer goods sector, especially for high-end brands and “Made in Italy” products, because they see competitive advantages in the country’s strong brand reputation. A mix of macro-economic and geopolitical factors has had a big effect during the past twelve months. The high-interest rate has been the most severe problem. Debt is getting more expensive, which led leveraged buyouts (LBOs) to become expensive as well. This has caused assets to be priced differently and made equity more important in financing structures. This has put pressure on valuations because funds have to be more careful with how they bid. Global critical factors, such as wars in some areas and issues with the supply chain, have also added a level of uncertainty to the market. This has made investors do more thorough due diligence, paying close attention to a target’s abil - ity to bounce back, its supply chain weaknesses, and its exposure to geopolitical risks. On the other hand, these factors have also opened up chances for PE to invest in businesses that can benefit from strate - gic reshoring, the transition to cleaner energy, or the
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