Last updated: August 13, 2026
Italian companies find themselves dealing with a challenging list of issues owing to economic uncertainty, political turbulence, and global market trends. In this context, businesses face the need to adapt, manage their resources, and succeed in the long term — which is where board advisory services come into play. Italy has been gradually implementing these services, and the demand is accelerating significantly as PE investment and regulatory requirements raise governance expectations across the market.
Key Figures at a Glance
| Data point | Finding | Source |
|---|---|---|
| Italy PE deal value growth (2025) | +83% YoY — total: €56.4 billion | AIFI-PwC, 2025 |
| Productivity loss from non-meritocratic hiring in Italy | -16% | European governance research |
| Gender board composition requirement for Italian listed companies | 40% female — mandatory by Italian Corporate Governance Code | CONSOB / Italian Corporate Governance Code |
| Italy GDP 2024 | +0.5% — Eurozone’s third-largest economy under growth pressure | Eurostat / ISTAT, 2024 |
The Current State of Business in Italy
Italy, the third-largest economy in the Eurozone, has long been known for its industrial heritage and thriving manufacturing sector. Nevertheless, the past few years have posed new and significant challenges. According to ISTAT, Italy’s GDP growth rate was just 0.4% in 2023, with 2024 showing a modest recovery to +0.5%. Compounding issues of inflation, international supply chain disruptions, and demographic pressure have proven detrimental for businesses and their profit margins.
Italian businesses also face demographic shifts alongside economic challenges: an ageing population and decreasing number of younger workers employed in specialised areas like technology and manufacturing. There is a rising demand for strategies of attraction and retention as talent participation rates in Italy continue to decline — creating a leadership pipeline challenge that boards must actively govern, not merely monitor.
Challenges Faced by Italian Businesses
- Economic uncertainty: The lingering effects of the pandemic, inflation, and geopolitical instability continue to create a volatile economic landscape. Italy’s manufacturing-heavy economy is particularly exposed to trade policy changes — including the U.S. tariff environment — which require rapid strategic adaptation at board level.
- Talent shortages: Italy faces significant talent gaps, particularly in technology and finance. Many companies are struggling to find skilled professionals, which hampers growth and innovation. The 16% productivity loss from non-meritocratic hiring is not a cultural footnote — it is a measurable governance failure that board advisory directly addresses through evidence-based director appointment.
- Digital transformation: Many Italian businesses must accelerate digital transformation to remain competitive. This requires specialised knowledge and leadership at board level — directors who have built and governed digital businesses, not executives who have approved digital budgets.
- Regulatory complexity: Italy’s regulatory environment — including CONSOB requirements, the Italian Corporate Governance Code’s 40% gender mandate, and CSRD mandatory ESG disclosures from 2025 — requires constant vigilance and strong governance. Boards without directors who genuinely understand these frameworks are creating regulatory exposure, not managing it.
How Executive Search and Board Advisory Can Help in Italy
- Strategic decision-making: Board advisory professionals offer insights into long-term strategic planning — helping executives and boards make informed decisions that lead to sustainable growth in a market where the investment capital is available but the governance infrastructure to deploy it effectively is the constraint.
- Talent acquisition and retention: Executive search firms specialising in board advisory identify top-tier talent in niche industries. By mapping Italy’s director pool by sector, regulatory expertise, and genuine independence, they help businesses attract executives who close governance gaps rather than fill governance seats.
- Governance and risk management: Board advisors bring experience in governance practices and risk management — helping businesses mitigate regulatory challenges and navigate the complex interaction between Italian corporate law, EU-level requirements, and PE investor governance standards.
- Digital transformation and innovation: Advisors with genuine digital transformation experience guide companies in integrating new technologies, improving operational efficiencies, and staying competitive in an increasingly digital world — providing the board-level oversight that management teams need to challenge, not just approve, digital investment strategies.
The Opportunity for Growth
Despite the challenges, there are significant opportunities for Italian businesses to thrive. With the right board advisory services, companies can tap into new markets, innovate with emerging technologies, and improve their operational efficiencies. Italy’s strong manufacturing base — combined with a growing tech sector and its position as a central player in the European Union — positions businesses to capitalise on global trends, particularly in sustainability and digital innovation.
The 83% growth in Italian PE deal value is not just a financial trend — it is a governance demand signal. The companies receiving PE investment need to professionalise their governance structures, build independent boards capable of satisfying institutional investor expectations, and develop succession planning that goes beyond the family management model. Board advisory firms that can navigate both the Italian business culture and PE governance standards are at the centre of this transformation.
In today’s rapidly changing business landscape, board advisory services are more crucial than ever for Italian companies. At Zavala Civitas, we specialise in providing the leadership and advisory support that businesses in Italy need to succeed.
Click here to learn more about our CEO & Board Advisory services.
Frequently Asked Questions: Board Advisory Services in Italy
Navigating board advisory in Italy’s evolving governance landscape?
Zavala Civitas provides board advisory and independent director search for Italian businesses. 92% closing rate.
