Italian M&A Landscape vs Transactional Risk Insurance market

Private Equity players were involved in almost the half of the transactions completed in 2019 (more that 500 PE-related deals), with Italy representing the 8% of the total European (incl. UK) buyout value, an increase of one percentage point against 2018.

Italian private capital operators sit on EUR 14bn dry powder, however this could be potentially balanced by a tighter credit cycle.

Covid-19 consequences likely to impact on deal making activity in the short term due to target’s valuation issues, with several deals already shelved in Q1 due to pandemic implications. However, stock market decline might offer public-to-private opportunities.

Defensive sectors (e.g. infrastructure, renewable energy, core real estate) less likely to be impacted by virus outbreak and expected to be active in 2020.

TRI solutions could see a large implementation in 2020 due to due to the uncertainty solvency of the Parties against investment grade guarantees.