Worker buyouts in Italy: capital structure patterns and financial vulnerabilities

This paper provides a first assessment of the financial performance of worker buyouts in Italy in a comparative fashion. Drawing on a dataset of 138 active worker buyouts in Italy between 2021 and 2023, the study employs descriptive evidence and mean-difference tests to assess the drivers of the capital structures of both worker buyouts and all Italian small- and medium-sized enterprises (SMEs). The analysis reveals that worker buyouts systematically present higher leverage and a lower incidence of zero-leverage compared to the population of Italian SMEs, underscoring the crucial role of external financing and institutional support in sustaining this organizational model. From a policy perspective, the evidence points to the need for stronger equity bases to reduce long-term vulnerability and to facilitate generational renewal