An interesting everyday SMEs example:
Two collaborating retailers, with eight (rented) branches in the Netherlands and Belgium which exist already 10 years. Real professionals. There were several stores, several employees and it looked like everything was running smoothly for years. However, there were no goals, no business plan, no financial overview per branch and, with the exception of payment by card, no automation. A partner took care of accountancy, tax refund and payments for years. They wanted to expand using financial means from third parties. Rabobank contacted us to have a look at it.
Our findings were not rosy. Instead of an expansion we suggested a reorganization. Some branches were technically insolvent, while others were doing great. They knew everything about the profession but just a little about the actual situation. The net earnings were rather negative.
We temporarily took over the accountancy. The intrinsic value capitalized and the cash flow per branch indexed. Meanwhile a central automation system took care of the administration. Next to other advices, such as a business plan, consultation with creditors and changes, they now have 4 strong branches. Rabobank has maintained their credit. The entrepreneurs are now 100% in control.