THE ROLE OF CERTIFIED PUBLIC ACCOUNTANTS AS TRUSTEES OF ITALIAN ENTREPRENEURSHIP – THE CASE OF M&L CONSULTING GROUP

 

In attempting to depict the diverse landscape of Italian entrepreneurship, one often engages in a rhetoric marked by recurring terminological associations, drawing upon characteristic elements that identify the long history of tradition, excellence, ingenuity, craftsmanship, and sophistication that has characterized the productive history of the national system and is still sought to be relived in the present.

 

However, within this well-known leitmotif, the pairing of "Italy - large industry" is conspicuously absent. This is due to the circumstance that the model of the American big company is perhaps as distant as possible from the SME, often family-led, which, in fact, constitutes the backbone of the entire national entrepreneurial system.

 

The reasons for the aforementioned phenomenon can be attributed to various factors not only strictly economic but also historical and sociological. Notably, the hesitant recourse to venture capital has, in effect, relegated our stock market to a secondary option compared to the traditional channel of bank financing. Today, however, small and medium-sized Italian enterprises find themselves operating in a scenario of global competition, where multinational players with incomparable resources are active. Added to this is the optimal exploitation of economies of scale, which effectively allows a reduction of unit production costs and an improvement in product margin. Furthermore, consider the greater resilience of these international groups to the occurrence of unforeseen unfavorable contingencies, such as the recent pandemic phenomenon that macroscopically impacted all operators, obliging them to endure an often unsustainable prolonged closure.

 

It is natural to question the existence of methods to overcome this fragmented entrepreneurial scenario without distorting its essence but providing the tools to be truly competitive and successful in international markets. Moreover, the concept of growth takes on a different connotation: if once expansion was a strategic choice achievable by the enterprise, today it takes on the form of a genuine categorical imperative to be pursued tirelessly and organized. The now anachronistic exaltation of the small business falls before the empirical evidence that the shortage of volumes, capital, and resources makes the business less competitive and sustainable.

 

From a strictly pragmatic perspective, the concept of growth can be understood in two main senses: that of internal organic development, contrasted with inorganic or external expansion through an acquisition and/or aggregation process with other operators. While the former represents the natural and slow evolution of a growth path consisting of cyclical investments often borne by the ownership itself, the latter represents a decidedly faster mode that leads to the formation of industrial poles, more or less large, capable of optimizing synergies resulting from the integration of multiple business entities.

 

Truth be told, the recourse to M&A operations or, more generally, to extraordinary finance often encounters lukewarm reception from some entrepreneurs in daily reality. This is primarily due to the partial understanding of these instruments, with the corresponding risk of not undertaking promising strategic aggregation opportunities due to an often unfounded fear of losing corporate control or, more simply, of opening up to new entities such as financial or industrial partners.

 

A conclusive response to such a phenomenon cannot ignore a path of education and a punctual attention to the concrete needs of entrepreneurs, with a practical and effective assistance approach. This should be able to create a shared strategic path of aggregation and business development. In this case, the role of the certified public accountant assumes a pivotal role. In fact, they are not only the entrepreneur's primary trustee but also have an in-depth knowledge of the company. They share its development prospects and, in particular, can intercept, understand, and enhance the fundamental needs of the entrepreneur through constant and qualified presence, usually heightened by a long-standing collaboration. In this context, the role of the certified public accountant evolves beyond the traditional role of tax advisor to become a consultant on a much broader front. They provide the entrepreneur with the tools to pursue the aforementioned inorganic growth, outlining an efficient strategy with a tailored and boutique approach derived from the special trust relationship with the entrepreneur. Obviously, the complexity of such operations cannot be managed by a single professional and their team alone. Therefore, the network plays an indispensable role. Collaboration with financial, legal, and technical advisors allows for a unified response to a project in which various skills must necessarily converge to pursue growth with a structured, organized, and effective approach.

 

In the Milanese context, the concept of the evolution of the profession of certified public accountants in the terms mentioned above has been successfully undertaken by M&L Consulting Group, a strategic consulting company specializing in M&A. Born from the ambitious initiative of Dr. Valerio Locatelli, Executive Managing Partner of Studio Locatelli Sani Ravani & Associati in Milan, and Dr. Alessandro Mattii, Partner of Studio Mattii & Partners in Perugia, M&L Consulting Group has immediately embraced the values of networking and the pluralism of skills. It has created an extensive network of Of-Counsel collaborators, also entering into significant agreements in the banking and structured finance sector. In addition to this, a didactic commitment towards companies has been undertaken, leading M&L to be among the main promoters of the prestigious "Industria Felix" Award. This award aims to enhance the excellence of the Italian industry through conferences and constructive discussions nationwide.

 

A young reality, with a qualified team drawing on the solid and enduring history of the professional studios of the founding partners, is capable of guiding the entrepreneur step by step in a path of valorization of their company. This path can materialize, for example, through the opening of capital to third-party players capable of providing additional resources to support the business, through the acquisition of competitors or the integration of the supply chain, and even through listing on regulated markets.

 

The effectiveness of this model is well demonstrated by the recent acquisition of the majority of the Perugian group Eagleprojects S.p.A. by Palladio Holding, an operation in which M&L Consulting Group acted as the sell-side advisor. This partnership will enable the leading company in the engineering and telecommunications sector to have the necessary resources to undertake a structured growth path both in the domestic and international markets. This will be achieved through acquisitions that allow for a swift expansion of the core business and a related broadening of competencies and areas of collateral operations.

 

Therefore, we return to the original question about the imperative of growth, opening up to new markets, and transcending the national dimension with an aggressive approach to progressive acquisitions. Perhaps, this constitutes the only effective antidote to becoming an active and non-defeated participant in this entrepreneurial Darwinism, where only those who demonstrate the courage to change can withstand the overall competition of international markets.

 

Dr. Alessio Ghidone