Global Insight | December 2025

Italian Firms Turn to M&A to Outpace Rivals

Italian companies are increasingly using mergers and acquisitions strategically, with activity spanning both domestic consolidation and selective cross-border expansion among mid-market players.

While government-backed mega-deals in banking and energy dominate headlines, significant activity is occurring in Italy’s middle market, where family businesses are consolidating and exploring foreign acquisitions to build scale and market position.

Domestic Consolidation Accelerates

This year’s largest Italian transactions have been domestic deals, with energy sector consolidations and banking mergers. There is visible government influence and willingness to support deals, particularly in sectors like banking with recent cases involving major institutions.

“We are also seeing domestic deals in the mid-market,” explains Annalisa Vitali, a partner at Nexia Audirevi. “The main reasons to sell are generational transition and the willingness to join bigger groups for aggregation in some industries.”

Family-owned businesses facing scale limitations and succession challenges are selling to larger groups that can professionalize operations and create sector leaders. By acquiring rivals in fragmented sectors like logistics, manufacturing, and transport, those larger companies can build market position in industries previously divided among many small players.

Cross-Border Expansion

Italian companies are also expanding into markets like France and Finland. “We’re seeing Italian companies going abroad,” says Alessandro Fornara, partner at Nexia Audirevi in Italy, although he emphasizes that domestic consolidation represents the majority of activity.

For export-driven businesses, geographic expansion offers diversification of customer bases. Companies concentrating revenue in one market face exposure to local economic conditions, regulatory changes, or trade barriers.

First-Mover Advantage

Italian banks remain stable and liquid, with balance sheets capable of financing expansion. The government’s visible role in supporting mega-deals indicates a policy environment that supports growth and consolidation and one that will also support mid market activity.

Timing matters enormously in M&A. First movers capture the best targets at the most attractive prices, before competition intensifies and valuations climb. They establish market position while rivals are still deliberating, building scale advantages that become self-reinforcing.

Vitali highlighted that the mid market segment represents the sweet spot for deal activity. Whether consolidating domestically to achieve scale or expanding abroad to diversify risk, companies that act decisively today will find themselves in a fundamentally stronger competitive position tomorrow. In a market where generational change is forcing transformation, standing still means falling behind.