Interview with Francesco Todaro, Of Counsel – Special Situations, Bacciardi Partners – By Simona Pistola
“A crisis never arrives suddenly: it arrives in the details.”
This awareness shapes the work of Dr. Francesco Todaro, Of Counsel – Special Situations at Bacciardi Partners, who supports entrepreneurs tasked with steering their companies through phases of tension and discontinuity.
The interview that follows offers a valuable interpretative lens for those who must guide a business in volatile environments: recognizing warning signs before they turn into a crisis has become an essential capability. Todaro’s reflections, grounded in direct field experience, help identify where vulnerabilities truly lie and how control can be maintained even when everything is shifting.
1. What is the first signal that betrays an incoming crisis?
“Signals emerge well before the financial statements. The first alarm bell is almost always liquidity pressure: deadlines that start to weigh heavily, tax payments made late, gradual margin erosion, recurring commitments that become harder to sustain. But the most revealing signals are often organizational, because a company ‘speaks’ through its people. Small signs of discontent, declining motivation, greater rigidity in granting leave or recognition, a climate that changes without anyone openly acknowledging it. Before a crisis appears in the numbers, it appears in people’s behavior. Human capital, in this sense, is the most faithful mirror of a company’s health. A crisis is never purely economic: it is always also organizational. That is precisely why it requires an ability to read both dimensions together.”
2. In phases of tension, where should attention to human capital really sit in the priority scale?
“At the very top. Because a company holds only if its team holds. In the most delicate phases, the decisive lever is not the financial plan, but internal cohesion. Clear, transparent, and continuous communication prevents misunderstandings, fears, and resistance that can slow down any recovery path. People accept sacrifices if they understand where the company is heading. What they do not accept is opacity. In every Special Situation I have handled, the first move has always been the same: rebuilding the internal pact. Without it, no technical intervention can work.”
3. Why has geopolitics become one of the most critical vulnerabilities for companies today?
“The main vulnerability today stems from the illusion that the context is still predictable. It is not. A distant event can disrupt supplies, costs, and industrial decisions within hours. This is why many companies are bringing critical functions closer to home: reshoring is not a return to the past, it is a form of protection. And in strategic sectors—such as defense—these fragilities are amplified: having a good product is not enough; reliable suppliers, secure supply chains, and flawless compliance are essential.
Another vulnerability lies in the slowness to read these changes. Companies that are performing well today risk realizing it last. Supply chains are selecting suppliers based on increasingly clear criteria: not only economic, but also environmental, technological, and reputational. This is where sustainability comes into play—not as an abstract principle, but as an immediate competitive factor.”
4. Is sustainability still an ESG topic, or has it become a real risk factor for companies?
“Sustainability is no longer an ESG issue to be managed out of obligation: today it is a genuine business risk factor. Those who address the ecological transition now gain a competitive advantage; those who ignore it risk being excluded from supply chains. This is a concrete risk: if you are not an adequate supplier, you are out. Full stop. And this is not about reputation; it is about business.
At the same time, environmental regulation is evolving at a pace many companies underestimate. A new directive can reshape an entire production cycle, block sourcing, or impose immediate obligations. Anticipation is the only true form of insurance. In such a context, arriving late means paying a much higher price.”
5. When is the right time for an entrepreneur to turn to a professional like you?
“The right time is before the entrepreneur realizes it themselves. And that is precisely the point: even the most brilliant entrepreneurs are immersed in day-to-day operations, focused on clients, production, and unforeseen issues. That is natural, but it makes it difficult to see risks that are growing beneath the surface. This is why a consultant with speed and predictive reading capability is needed—someone not emotionally involved, who can detect weak signals before they are perceived internally.
The real added value in Special Situations is not intervening once the crisis has exploded; it is helping the entrepreneur act earlier, when choices are still possible. And when we enter a company where criticality is already evident, the logic does not change: speed and method. Immediate diagnosis, liquidity protection, a clear and shared plan, transparent communication, and staff involvement. In these phases, timeliness matters more than technique. Exactly as in medicine: early diagnosis changes the patient’s fate.”
6. Why can companies no longer afford to face tensions with “siloed” skills?
“The need for a coordinated vision emerges strongly in daily work. Special Situations show that no single skill set is sufficient on its own. The tensions affecting a company are never purely financial or purely operational: they arise from the interaction of industrial, strategic, economic, and legal factors that amplify each other. This is why teams capable of reading the company as a whole are required.
Companies must always be ready to change course, keeping their eyes on the horizon, not on the immediate waves.”
7. How would you define your work in one sentence?
“If I had to define it, I would say this: turnaround is not an event, but a mindset. My role is to help entrepreneurs change course with clarity, keeping their gaze far ahead, beyond the immediate waves.”
Bacciardi Partners is available to support entrepreneurs and management in the early identification of warning signs, in managing phases of discontinuity, and in defining timely and sustainable intervention paths.
Contact us to jointly assess your company’s situation and the possible actions to take.