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The Italian Search Fund Observatory was created to systematically track and analyze the evolution of the SF ecosystem in Italy. Its objective is to provide a structured understanding of the market through original research based on interviews, surveys, and direct data collection.
Now in its second year, the Observatory—developed by the Graduate School of Management at Politecnico di Milano, with support from the Osservatori Digital Innovation initiative and in partnership with Eureka! Venture SGR—updates the first national mapping of Search Funds in Italy.
The study offers a comprehensive overview of the ecosystem as of 2025, examining the development of the market, the characteristics of Italian searchers and investors, and the main trends emerging from completed searches and acquisitions conducted by Italian SFs.
The Italian SF ecosystem experienced significant growth between 2016 and 2025. By the end of 2025, Italy counted 37 mapped SFs, including 20 active searches, 17 completed acquisitions, and 2 exits. The annual increase in activity was the strongest ever recorded, and the acquisition success rate reached 94%, outperforming international benchmarks (79%).
In Italy, fundraising lasts around 3.5 months on average, while the acquisition search phase takes roughly 21 months.
The typical Italian searcher is approximately 34 years old and often comes from consulting, general management, private equity, or investment banking backgrounds. Most searchers hold MBAs (66% of cases), highlighting the central role of business schools in spreading the model. Female participation remains very limited (only 4%).
Investor participation is increasingly international: 57% of capital comes from European investors, 14% from the Americas, only 28% from Italy. Institutional investors provide the largest share of funding (46%), followed by private individuals (32%) and family offices (22%). The average fundraising amount for the search phase is approximately €562,000, and average number of investors is 18.
The acquisition process is highly selective. Searchers contact more than 1,700 companies on average, sign about 5 LOIs before completing one transaction. Preferred targets are profitable SMEs with stable cash flows, growth potential, and low technological or regulatory risk.
Most sellers involved are first or second-generation entrepreneurs between 60 and 80 years old who decide to sell their businesses mainly due to succession challenges. In more than half of the transactions, sellers remain operationally involved in the company after the acquisition to support the handover and preserve business stability. In addition, vendor loans are used in approximately 75% of transactions, reflecting a high level of trust and alignment between buyers and sellers.
The acquired companies generally show strong financial performance, with average revenues around €10M and EBITDA margins around 23-24%. Most transactions are concentrated in Northern Italy.
Post-acquisition, searchers assume CEO roles and focus on operational improvement, growth, digitization, international expansion, organizational modernization, and sometimes pursuing acquisitions. The main challenges involve change management, personnel issues, achieving sustainable growth, and maintaining continuity with former owners.
Overall, the report concludes that SFs represent a promising solution for Italy’s succession challenges among SMEs while simultaneously creating entrepreneurial opportunities for a new generation of managers and investors.
Overall conclusion
The report concludes that SFs are becoming a promising and scalable solution for Italy’s SME economy. They help solve succession problems, inject managerial talent into traditional businesses, and create opportunities for young entrepreneurs to become company owners and CEOs.
Although still at an early stage, the Italian ecosystem is growing rapidly and may become one of the leading SF markets in Europe in the coming years.
Read the full study: https://www.osservatori.net/progetto/italian-search-fund-observatory/
