Mergers & Acquisitions in Italy

Despite numerous problems such as political instability, a weak lira and the ever-increasing budget deficit, Italy's economy is giving off positive signs. This is partly due to the general worldwide economic recovery, but the weak lira allows Italian products to be sold abroad at extremely competitive prices. In the light of the country's current political instability, one would have expected to see a reduction in the level of foreign investment. However, despite the predictions of many international analysts, this has not proved to be the case. On the contrary, foreign investors continue to invest in Italy, they have also increased the level of such investment. If anything, a change can be detected in the type of target chosen for such investment. The majority of recent investment by non-residents is being made in small to medium sized companies, the attraction of which seems to lie in their technology, know-how and their position in the market.