Mind the gap

Understanding the Mind the gap section

Mind the gap is Collaboration Capital's forward-looking section. It starts from a simple observation: the rules that determine a company's value, how it attracts capital and how it is financed are changing faster than the usual analytical frameworks. The current year's accounts often show none of this; it is at the time of a sale, a fundraising or a financing request that the gap becomes visible, and that it is reflected in the price.

Each piece in the section follows the same logic: it names a gap, provides observable evidence of it, then sets out what a business owner can concretely do about it. The aim is not to predict the economy ten years ahead, but to inform decisions that will be taken in the coming months: preparing a sale, choosing an acquisition target, structuring a financing.

How the section is organised

The pieces are grouped by main theme, numbered at the head of each series. Each card presents a gap in a few lines and links to a detailed analysis; the section grows with each publication, as new transformations become observable.

Value is shifting

The first theme concerns sources of value. In many sectors, a growing share of value rests on intangible assets — data, software, know-how, quality of customer relationships, recurring revenue — which approaches based solely on assets or on historical results capture poorly. For a seller, this means documenting these assets before going to market; for a buyer, learning to value them and to identify the risks attached to them, such as dependence on a few key people.

Capital needs a story

The second theme concerns the relationship between the company and its investors. Figures alone are no longer enough to convince: investors and buyers expect a coherent narrative that explains where performance comes from, why it is sustainable and how it can still grow. A company able to articulate its trajectory clearly — its market, its competitive advantage, its external growth plans — approaches a fundraising or a sale on better terms.

Direct consequences for financing

These changes also affect financing. Lenders focus on the company's ability to generate regular cash flows and on the quality of its financial data, while the range of solutions is widening: bank debt, working capital financing, leasing, equity or project-specific structures. Knowing which solution matches which need becomes an advantage in itself.

For the business owner, the key is to anticipate: a financing need expressed in a hurry is rarely negotiated on good terms, whereas a file prepared in advance leaves time to compare the options and choose the most suitable structure.

What can a business owner do with it?

The section is aimed primarily at owners and shareholders of SMEs and mid-sized companies considering a corporate finance transaction. Its analyses can be used in three ways.

Anticipating a sale

Identifying the gaps that weigh on your company's value makes it possible to address them before going to market: making financial data more reliable, reducing dependence on the owner-manager, highlighting recurring revenue. These workstreams take time and are best started well before a sale process is launched.

Choosing an acquisition target

For a buyer, these frameworks help to distinguish companies whose value rests on lasting assets from those whose performance depends on a temporary situation. They complement conventional financial analysis with a reading of the value chain: skills, customers, technologies and organisation. They also encourage looking beyond the companies officially for sale: the most attractive targets are not always on the market.

Preparing a financing

Finally, understanding what funders look at makes it possible to present a stronger case: well-argued forecasts, indicators tracked over time, a precise use of the funds requested. Collaboration Capital supports these processes, from structuring the file to finding the right funders, for transactions of €1 million to €200 million.

To take these ideas further, see our business valuation method, the framework to assess an acquisition target across its value chain, our solutions for equity fundraising and opening up the share capital and the banking ratios analysed before any financing. Our pages on selling a business and buy-and-build external growth explain how these transactions are carried out in practice.

Frequently asked questions about Mind the gap

What is the Mind the gap section?

It is Collaboration Capital's forward-looking section. It documents the gaps between the business models still being taught and those already in operation, and their effects on sale, acquisition and financing decisions.

Who are these analyses for?

For business owners, shareholders and investors preparing a corporate finance transaction or wishing to anticipate changes in the value of their company. Each piece ends with concrete courses of action.

How do these gaps affect the valuation of my company?

A gap that does not yet show in the accounts can weigh on the price at the time of a sale or a fundraising. Identifying it early makes it possible to correct it or to highlight it before buyers and investors do so for you.

How can I discuss these topics with Collaboration Capital?

You can request a confidential meeting: a first 30-minute conversation with a partner helps to scope your sale, acquisition or financing project, with no commitment.

Do these analyses constitute personalised advice?

No. The pieces in the section offer general frameworks. To apply them to your situation — valuation, preparing a sale, searching for a target or for financing — a conversation with a partner allows them to be tailored to your company.