The Italian striker completed a £16million move to Anfield late in the transfer window.
Brendan Rodgers was prepared to take a calculated risk on the ex-Manchester City man and bring him back to the Premier League despite his reputation for being difficult to handle.
Balotelli has made a slow start to his career on Merseyside, with Liverpool still working on his form and fitness, and he was dropped to the bench for a home date with West Bromwich Albion heading into the international break.
He has also been overlooked by his country for European qualifying duty, with his former employers at the San Siro suggesting that they are glad to be rid of a player who has lost his spark.
Gandini said in the Daily Star Sunday: "We all felt coming to Italy, to a place where he was loved, would have been the ideal environment for him to blossom into a star player.
"But it didn't work out for both sides.
"Mario was not the kind of player we were looking for in order to have a better team on the pitch.
"On the other hand, he probably felt the Premier League was the best stage for him to perform on and he wanted to go back there.
"So Liverpool came at just the right time. It just made everyone happy."
Balotelli netted 26 times in 43 Serie A appearances for Milan, but Gandini says the 24-year-old is not a natural goal-getter.
He added: "The way Mario plays is not like a pure number nine, a centre forward.
"Our problem at Milan was not having a forward who played in the box. But Mario was not used to doing that."