Confindustria Lombardia steps in to support the generational handover

A project designed to transform generational succession into a structured process of planned growth, thereby strengthening the bankability and financial sustainability of family businesses.

“As young entrepreneurs,” emphasises Stefano Rossi, president of Confindustria Lombardia’s Youth Wing, “we feel a responsibility not to squander the immense entrepreneurial heritage and wealth of knowledge that characterises Lombardy and generates widespread wealth and well-being. With BridgeUp, we aim to create the conditions to ensure that business continuity is a viable option in a market where opportunities offered by private equity are growing, whilst bank lending is subject to increasing restrictions and constraints. That is why we want to support businesses, through financial partners, in preserving the value of family entrepreneurship – an asset that has enabled Italia to grow and conquer markets all over the world.”

The project focuses on three key areas: financial and managerial training, to ensure the new generation becomes a knowledgeable and credible partner for the banking system and stakeholders; the development or strengthening of business plans, with a focus on strategic coherence, economic and financial sustainability, and repayment capacity; and access to appropriate financial instruments, through an ecosystem of selected partners and a structured process of analysis, selection and support. The aim is, on the one hand, to reduce information risk for lenders and, on the other, to foster scalable and sustainable growth whilst simultaneously strengthening the role of the new generation in dialogue with the financial system.

A project centred on collaboration between multiple stakeholders. Starting with Confindustria Lombardia Giovani and the regional branches of Confindustria Lombardia, the aim is to develop the initiative on a case-by-case basis and engage businesses across all areas. These organisations are joined by credit institutions and financial partners (CDP, SACE, Finint Investments, Amundi Investment Solutions, MPS, Banca Ifis, Banca UBAE), with Pirola Corporate Finance providing independent advisory services.

“The generational handover,” emphasises Maria Anghileri, president of Confindustria’s Young Entrepreneurs’ Association, “is one of the most significant challenges for the future of family businesses, and over the next ten years almost half of them will be affected by this transition. It is also an opportunity: a well-prepared succession is not just about transferring assets, but about building the leadership of the new generation and creating the conditions for a new phase of growth.”

“This region,” explains Giuseppe Pasini, President of Confindustria Lombardia, “is the cradle of family-run businesses, and if the economy is holding up at this stage and performing better than others – I’m thinking of Germany, for instance – it is precisely because of these companies’ ability to anticipate change: in this respect, we are certainly better than others. So, let’s applaud this initiative, which is encouraging businesses to set their sights on growth once again.”

“In our strategic plan,” adds Guido Guidesi, the regional councillor for Economic Development, “we have decided to continue focusing on manufacturing, and of course this strength can only be maintained if we continue to have entrepreneurs. BridgeUp is a great initiative because it focuses on the new generation – the driving force behind innovation and invention – a generation which, if properly supported, will surprise us in a positive way.”

During the operational phase of the project, Pirola Corporate Finance acts as an independent adviser, supporting selected family-owned businesses through the generational transition via a structured process of strategic and financial analysis, ensuring coordination between the new management, the business’s operational requirements and the network of lenders.

Based on the findings that emerged during the assessment phase, the business plan is revised with the aim of translating the new management’s strategic vision into a clear, coherent and financially sustainable business plan.

Once the business plan has been finalised, the focus shifts to securing the necessary sources of funding to support its implementation.

At this stage, a detailed analysis is carried out of the company’s financial requirements, in line with its growth strategy, capital structure and risk profile as identified in the previous stages.