The case of real estate and retail entrepreneur René Benko is developing into one of the most spectacular crises in Europe. The Austrian businessman has a prominent presence in major city centers with department stores and construction projects. His company Signa estimates the gross asset value of its real estate at 27 billion euros. This includes the Galeria department store chain, KaDeWe, stakes in the Swiss Globus chain, and billion-dollar development projects, which primarily exist as plans. The depth of the financial holes that need to be filled is not yet known. Experience teaches us that in such cases, there is usually more amiss than initially suspected. Currently, there is talk that Signa Prime Selection, the group's most important real estate company, is seeking fresh funds from investors, reportedly up to 2 billion euros.

Benko led his empire with the motto "divide and conquer." Signa is considered extremely nested. There is no consolidated financial statement that would provide an overview of the entire group. The tax consultancy firm TPA was specifically consulted on how to avoid consolidating the entire group. Outsiders can hardly navigate through the company's tangle. Presumably, Benko was the only one who had some insight. The threads converged with him, even though he had not held an operational role for a long time. The "Wunderwuzzi" – a nickname expressing both admiration and a hint of skepticism – managed his empire until recently through the chairmanship of the advisory board.

The rise and fall of the Jack-of-all-trades has much to do with typical traits of self-made entrepreneurs. They possess an excellent sense for lucrative business, a high tolerance for risk, and an enormous dedication to hard work. They make decisions intuitively and don't dwell on them for long, ensuring speed in implementation. They are often charismatic individuals. With charm and persuasion, they attract investors. Benko managed to win over economic figures such as consulting legend Roland Berger, construction magnate Hans Peter Haselsteiner, billionaire and transport entrepreneur Klaus-Michael Kühne, and the Peugeot family. The longtime Porsche CEO Wendelin Wiedeking was also involved but exited early, stating differences in numbers as the reason. Insurance companies and fund management firms are invested as well, even the RAG Foundation responsible for the perpetual obligations of German mining.

However, the climbers hesitate to share power. They don't want interference and prefer to make all significant decisions themselves. This backfires when things go awry or a crisis looms. There are numerous examples of supposed successful entrepreneurs who ultimately failed due to their own mistakes. Media mogul Leo Kirch went bankrupt in 2002 because his debts became overwhelming. The television interview where the then Deutsche Bank CEO Rolf-Ernst Breuer hinted at Kirch's lack of creditworthiness was the last straw. Two decades earlier, Friedrich Jahn caused a sensation as his Wienerwald restaurants collapsed under debt after wild expansion. The largest real estate bankruptcy in Germany to date was orchestrated by the construction magnate Jürgen Schneider, who gained fame for the elaborate restoration of historic buildings but overextended himself during the real estate boom after reunification and eventually ended up in prison for fraud and forgery of documents. Whether Benko will face legal consequences for his business model, built on aggressive valuations, remains to be seen.

All these cases share a lack of transparency and control. There is a deficiency in appropriate leadership, management, and oversight structures that demand financial soundness. Many passionate entrepreneurs are interested in growth and customers, less so in good corporate governance. They neglect to establish efficient corporate governance in a timely manner, harming themselves in the process. Powerful control mechanisms may incur costs but contribute to ensuring long-term business success.