In the M&A market, the relationship between private equity funds and Italian SMEs is becoming increasingly central. However, collaboration between financial capital and entrepreneurial management requires balance. Differences in language, objectives and method can make it difficult to build a stable and productive partnership.

Private equity and SMEs: two visions of the same goal

A private equity fund aims to enhance and grow a company within a defined time frame and with clear return objectives. An SME owner, instead, focuses on continuity, identity and autonomy.

For the fund, indicators such as EBITDA, margins and multiples are the main reference points. For the entrepreneur, the real value lies in people, reputation and the company’s history.
These differences are not necessarily an obstacle, but they become critical if not managed with a clear method from the early stages of negotiation.

The cultural gap between financial and entrepreneurial capital

In many Italian SMEs, ownership and management coincide. This direct relationship is a strength but can also become a limit when external investors enter the company.
The arrival of a private equity fund introduces a structured governance model, with a formal board, reporting systems and shared decision-making processes.

For the entrepreneur, this may seem like a loss of control, but it is actually a natural evolution: moving from personal leadership to managerial governance.
In many cases, this transformation allows the company to attract new capital and expertise without losing its identity.

The conditions for an effective partnership

Value is created when both sides recognise and respect their roles.
A private equity fund brings financial resources, experience and method. The entrepreneur contributes industrial vision and deep knowledge of the sector.

For the partnership to work, some key conditions are required:

• Clear governance: roles and powers must be defined from the beginning in the investment agreement.
• Progressive involvement: the entrepreneur can reinvest a portion of the proceeds to ensure alignment and continuity.
• Shared business plan: financial and industrial objectives must converge into a measurable plan.
• Respect for company identity: capital must support the culture of the enterprise, not replace it.

When private equity becomes an ally for SMEs

Private equity is an accelerator of growth, not a corrective tool.
An investment works when the SME already has a solid structure and a clear development strategy.

In these situations, the fund can provide capital for acquisitions, international expansion or generational transitions, while keeping the entrepreneurial project at the centre.
A successful private equity transaction is built on shared methods, objectives and timing. The capital should not change the nature of the company but strengthen its ability to compete in more complex markets.

Conclusion

The distance between private equity and SMEs in Italy is not structural but cultural.
Bridging it requires dialogue based on trust, transparency and a shared vision.
When financial logic and entrepreneurial vision meet, the result is not only a successful M&A operation but a long-term industrial project capable of generating lasting value.