The Impact of Private Equity Investments on SMEs in the Italian Market: The Successful Story of Piquadro SpA

Matteo Tosca

Student thesis: Master thesis

Abstract

The main aim of this thesis is to investigate the positive impact that private equity activities can have on small medium enterprises. This topic has been long studied by scholars but there are different points of view toward this topic. Someone states that private equity can positively affect SME‟s performances enhancing growth, efficiency, transparency and internationalization, while others declares the there is short term positive impact with a medium to long term losses in terms of value creation and jobs caused by the necessity to optimize return on investment typical of PE„s nature. The secondary objective of this work is to understand how Private Equity funds manage to boost venture backed companies into successful cases of growth and what are the drivers leveraged to create value. The necessity to reach a minimum scale is a crucial matter especially for Italian companies that due to structural and cultural reasons seem to be unable to grow beyond a certain level. The case brought as an example show how the collaboration between PE and the entrepreneur can achieve incredible results allowing companies to compete in a globalized word. Thus open the door to investments funds is still not an option that is usually taken in consideration by companies but there should be a change into the entrepreneurial system in order to allow Italian firm to overcome different problems and prosper once again

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2013
Number of pages79