More and more enterprises in Italy – in particular in the Northeast area – are interested in opening up their capital to third parties. This may result in a competitive boost to the production system. However, in order to achieve this, it is important to avoid brain drain, attract new talents, and have a local financial system which is able to meet the needs of enterprises. This is what Massimo Malvestio – an experienced lawyer and an expert in value investing – had to say in an interview with “Nordest Economia”, which was published on January 20.
“Over the last year, the multiples offered by the markets to small companies have grown”, said the expert, and “this has prompted many companies to go public”. This is one of the reasons why private equity investments have grown, as their goal is “to give value to investments in the medium term and then resell”. As explained by Massimo Malvestio, another reason can be found in the boost provided by the regulatory system, thanks to “several measures facilitating the listing of smaller companies and bringing assets closer to risk capital”. According to him, this change “will consolidate and develop further if the legislative framework remains favorable”: “Listing costs are still very high and excessive if we consider companies whose aim is to raise only a few million euros on the market”. However, the opening to the market is still favored by the fact that “transparency is now in the DNA of the vast majority of companies. The rules of the stock market are not perceived as a trauma, unlike what happened in the past”.
As emerged during the interview, the PNRR can represent a great growth opportunity for Italy. However, it is necessary to focus on competence and leverage talented people: “The Triveneto area must avoid brain drain and attract new talents”, Massimo Malvestio pointed out, while adding that “we have our cards to play: not only the landscape, but also the quality of our lifestyle, a world-class healthcare system, universities and an extraordinary business system”.
In his interview with “Nordest Economia”, the expert in value investing also stressed the importance of having an efficient local financial system. In the Triveneto area, instead, local banks have gradually disappeared over the last decade. “The Triveneto area no longer exists from a banking point of view, apart from Cassa Centrale in Trento and apart from the province of Bolzano”, Massimo Malvestio explained: “Savings banks, cooperative banks and cooperative credit banks – even those existing through parent companies – have been deprived of their typical features by legislation and pushed towards a joint-stock company model”. In this framework, “the big ones incorporate the small ones”, he said, emphasizing that it is “impressive” how the Triveneto area has undergone this “without proposing any alternative”. “This is how we become suburbs, a little at a time”, Massimo Malvestio said in conclusion.