M&A activity in Italy is showing signs of recovery after a sluggish few years. In 2023, the trend of rising deal counts continued, with around 1,511 announced transactions—a 40% increase compared to 2020.
We spoke to Dr. Andrea Barbera, the Founder of ASB Consulting, a firm specializing in M&A transactions and corporate strategy, to discuss his career in financial services and his predictions for the sectors poised for the most investment in the coming years.
Q: How did you build your career in M&A advisory?
I’ve always wanted to be a chartered accountant, so I began my career at large audit firms, starting with Arthur Andersen and then Deloitte. After gaining valuable experience in auditing and earning my professional qualification, I joined a mid-sized firm in Padua where I focused on ongoing corporate and tax consulting for businesses.
After a few years, I decided to branch out on my own, working on specific projects and leveraging relationships with partners from audit firms to conduct due diligence during company acquisitions.
I then founded my own consulting firm, offering corporate and tax services. Recognizing an opportunity in the market, I shifted my focus to international clients, particularly those with foreign companies wanting to trade in Italy and needing to open a branch or register for VAT to operate here. We’ve been acquiring larger clients, including multinationals and well-established groups, at a rate of about two new clients per month, and we’re still expanding.
I also maintained my role as an advisory consultant in merger and acquisition operations, assisting both buy-side and sell-side transactions for industrial companies and real estate deals.
Q: How do you compete with other M&A advisories?
I work with both foreign and domestic clients, focusing on structuring deals to maximize tax and operational benefits, managing due diligence, and drafting essential agreements.
I’ve handled these processes well thanks to the skills I’ve built over the years. Finance and M&A activities require a deep and broad understanding of corporate and tax dynamics, along with advanced skills in asset valuation, budget planning and business planning.
Three years ago, I decided to combine my services with other specializations, such as VAT issues, fiscal representation, and corporate consulting for foreign companies. As a small firm aiming to deliver high-quality services, I can’t compete directly with larger international firms, but I’ve found some valuable niches.
I positioned myself as a medium-sized firm working with companies that have a turnover below €50 million. Many smaller companies that rely on a local accountant with a single office often lack a solid approach to handling major, unusual operations. This is usually because their accountant has only dealt with these situations a few times, given their rarity.
So my potential clients are companies with turnovers ranging from €5 million up to €40 million, which often don’t have the knowledge or experience to manage generational transitions or take advantage of significant acquisition opportunities.
Q: Which sectors in the Italian market do you think will receive the most investment in the coming years?
Right now, I’m very focused on the opportunities tied to the PNRR (Italy’s National Recovery and Resilience Plan), which is allowing Italy—and the entire system—to benefit from a huge amount of funding, including grants that don’t need to be repaid.
For example, here in Padua, a city known for its university since 1222, there’s a recurring issue with the shortage of student housing. This has attracted significant attention not only from the local administration but also from major institutional investors. They’re focusing on Padua more than other Italian cities for various reasons, and one incentive here is a grant of €20,000 per bed, defined by the Ministry of Universities and Research and funded by the PNRR.
So, if a developer plans a €20 million investment to build a 400-bed student residence, they could receive €8 million in non-repayable funds, available immediately by June 30, 2026. This makes anything the government has included in the PNRR likely to see rapid growth in the next few years.
As for business or industrial sectors that may develop in the coming years, food is an obvious one for Italy. This includes all areas of food production—like pasta, bakery goods, or meat processing—and the companies that support them, such as packaging manufacturers.
I don’t see much growth in clothing production, though established brands are likely to expand.
We’re all aware of the current crisis in the automotive sector. It doesn’t look like there’s a quick fix on the horizon, which will impact the entire supply chain. In contrast, sectors related to software and technology are likely to keep growing steadily and deliver good results over time.
Q. The energy sector is attracting significant investment. Does this reflect what you’re seeing?
The energy sector is an interesting one, because high costs create barriers to entry. This is where government incentives come in, including those from past administrations, and now we’re seeing even more momentum, especially with the rise of renewable energy communities—a hot topic that banks are heavily supporting.
The sector has received substantial funding, and I wonder whether it would have grown as much without incentives. For example, the installation of photovoltaic panels has been popular for about 20 years, with ups and downs, as well as high-efficiency condensing boilers, storage batteries, and other modern amenities.
When it comes to actual energy production, it’ll be interesting to see how renewable energy communities evolve over time. There’s also a lot of focus on them right now, and significant funds are being allocated by banks for these activities at very favorable rates.
So, we have a perfect mix of conditions at the moment, including good financial terms, supportive government policies, and the contributions I mentioned earlier. These combined factors can mobilize large amounts of capital.
