Global Insight | October 2025

Italy’s Aging Business Owners Spark Buyout Bonanza

Thousands of family-owned Italian businesses, founded between the 1970s and the1990s, are now facing succession crises as their founding entrepreneurs approach retirement, creating significant opportunities for investors in Europe’s fourth-largest economy.

With Italian company valuations trading at substantially lower multiples than their American and European counterparts, private equity firms and specialist aggregators are targeting Italy’s fragmented middle market.

The Succession Crisis

“The typical Italian company is basically a small-medium sized entity,” explains Annalisa Vitali, an M&A expert from Nexia Audirevi, based in Italy. “Many of these businesses were founded decades ago and are family-owned. Now we’re seeing a generational transition issue that needs to be tackled, and one way to address it is through mergers and acquisitions.”

The Italian market is built on many small companies, yet the volume of M&A deals remains relatively low — just a few hundred annually. This represents potential for growth, particularly in sectors like logistics, manufacturing, transport, and jewelry.

The Aggregator Play

Private equity funds and specialist consolidators are identifying fragmented industries and systematically acquiring multiple small players to create scale. The strategy involves buying several competitors in the same sector, professionalizing operations, and building market leaders.

Italian multiples are significantly lower than in the United States and compared to other European markets. “Investors can find more attractive opportunities,” notes Alessandro Fornara, also a partner at Nexia Audirevi, highlighting that the same company might trade at a discount in Italy compared to elsewhere. “Buying the same sort of business in Italy is less expensive and may help investors potentially exit at higher multiples later.”

The Search Fund Revolution

Over the past four to five years, a phenomenon called “search funds” has gained traction. Individual entrepreneurs raise capital from investors to acquire and personally operate small Italian businesses facing succession issues. “The search founder is the one who will make the management buyout and manage the company himself,” Fornara explains, describing this as a hybrid between entrepreneurship and private equity.

Italian banks remain liquid and supportive, partly due to Italy’s high per-capita savings rate compared to other European nations. This provides accessible financing for these consolidation opportunities.

The window may not remain open indefinitely. As competition intensifies, valuations are likely to rise. For businesses and investors looking to scale, timing is becoming increasingly important.