DAY 2 — Valuation Gaps as Credibility Gaps
Pricing is the behavioural story behind truth tolerance.
The 2026 report highlights a widening value gap:
sellers hold to optimistic pricing; buyers model downside risk.
On paper, this is a financial mismatch.
Behaviourally, it is something else: credibility compression.
Valuation gaps form when one party’s narrative no longer fits the other party’s reality.
A founder defends a premium based on loyalty — without proof of retention.
A CEO insists on breakthrough technology — without independent validation.
The deal structure becomes complex because the trust structure already is.
A value gap is simply a numerical expression of a truth-tolerance gap.
Takeaway:
In 2026, price disagreements are just symptoms.
The real issue is the buyer’s declining tolerance for the seller’s story.