Chinese acquisitions in Italy: advantages for Sme’s

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The rating agency Crif Ratings carried out research on a sample of Italian companies acquired from Asia, identifying as a positive result the increase in assets and a sharp reduction in financial debt.

In particular, given that Italy is now the third European country in which Chinese investments come, the research focuses precisely on China, which no longer seeks only Large Corporate and well-known brands, but also SMEs, which is precisely the kind of company that constitutes the Italian economic tissue.

The research focuses on 40 companies with less than 500 million revenue: the most interesting sectors appear to be instrumental mechanics, robotics, and automotive components.

The results in the first 12 months from the entrance of the Chinese partners are

Reduction of leverage and therefore of debt

Improvement of the ratio between financial debt and equity.

 

"According to the results of the sample examined, the SMEs affected by Chinese investments have had immediate benefits in terms of financial stability and assets. The acquisition strategies carried out by the Chinese groups on the national productive tissue are often accompanied by significant injections of liquidity to the benefit of equity and indebtedness ", commented Chloé Ehrhardt in a note presenting her research.

 

The entry of new members, perhaps foreign as in the specific case, should not be seen as a failure of the entrepreneur or yet another conquest of foreigners, but as a moment of mutual enrichment. In addition to a concrete way to reduce bank debt, which is still one of the main default reasons for our companies.

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