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By Erik Doucette – Vice President, Commercial Banking, Signature Bank for Milwaukee Business Journal

Acquiring a business is one of the most exciting — and complex — milestones in a business owner’s journey. Whether you’re a first-time owner or a seasoned investor, how you structure the financing can have long-term implications for value creation and risk.

One of the most reliable and cost-effective tools available to business buyers is bank debt. Sometimes bank debt is discussed less than equity or alternative financing sources; however, it plays a foundational role in well-structured acquisitions. Based on my experience working with a wide range of buyers — from individual entrepreneurs to private equity groups — it’s clear that bank debt offers a powerful and affordable path to growth, especially when paired with a true banking relationship.

Understanding bank debt in the acquisition landscape

In acquisition financing, “bank debt” refers to loans provided by traditional financial institutions, often secured by the assets or cash flow of the target business. This type of financing is generally less expensive than equity or subordinated debt and can help preserve ownership while supporting strategic expansion.

You may also hear the term “senior debt” used interchangeably. In technical terms, senior debt refers to the portion of a company’s capital structure that has priority in repayment — typically bank loans. For most business acquisitions, especially those led by individuals or family offices, the practical distinction is minimal. What’s important is that bank debt represents lower-cost capital with a clear repayment structure.

Structuring an acquisition: Real-world examples

While no two acquisitions are alike, common patterns emerge in how deals are financed — often combining several forms of capital. Here are a few recent Signature Bank examples that illustrate the versatility and impact of bank debt:

• Accelerator-backed individual buyer. In one case, a buyer backed by an accelerator program — typically composed of experienced professionals, often with MBAs or military backgrounds — identified a promising acquisition. The structure included personal capital from the buyer, equity from the accelerator and a senior secured loan from the bank. The result was a disciplined capital stack that preserved flexibility and maintained growth capacity after closing.
• Entrepreneur-led purchase with seller financing. Another example involved an individual purchasing a Wisconsin-based business valued at $7 million. The buyer contributed $700,000 of equity, obtained $5 million in bank financing, and negotiated a seller note for the remaining balance. This structure balanced risk between parties and created a clear path to ownership transition and debt service.
• Institutional acquisition with layered capital. In a larger transaction, an investment group acquired two long-standing food production manufacturers for $50 million. The group raised $20 million in equity, obtained $20 million in bank financing and secured an additional $10 million through mezzanine debt. The depth of historical cash flow and the group’s operational experience supported this multi-layered structure.

Across each of these scenarios, bank debt served as the foundation — anchoring the deal with cost-effective, repayable capital and enabling the buyer to avoid overleveraging or unnecessary equity dilution.

Why relationships still matter

Financing a business acquisition is about more than balance sheets and interest rates — it’s about trust, timing and having a strategic partner who understands the full picture.

One of the greatest advantages of working with a real relationship banker is that business owners don’t just receive financing — they gain a relationship with a banker who is committed to helping them succeed. If your banker is only discussing cash flow and collateral, you might not have a real relationship.

When I work with a client, I focus first on listening:

• Who are you as a buyer?
• What is the story behind the business you are acquiring?
• What is your vision for the next stage of growth?

That understanding helps us structure deals that match real-world business goals, more than just financial formulas. It also allows us to move quickly when timing is critical, which can make or break an acquisition opportunity.

Sometimes we lightheartedly joke with clients, “We’re the only partner in your acquisition journey who doesn’t send a bill.” A genuine banking partner adds value in numerous ways — such as providing access to a trusted network of legal, accounting and advisory professionals who can assist with due diligence, transaction execution and post-close planning. Because our involvement continues well beyond the closing, clients benefit from an enduring relationship they can rely on, not merely a one-time transaction.

Financing the next chapter of your business story

There’s no one-size-fits-all approach to financing an acquisition. Some deals require simplicity; others call for layered capital. What remains consistent is the role bank debt can play in anchoring the structure — offering lower cost, reduced dilution and a clear repayment path supported by the acquired business’ own performance.

For business owners evaluating their next move, it’s worth considering bank financing not just as a source of capital, but as part of a broader strategy to grow with discipline and preserve value.

To learn more about structuring smart acquisition financing, contact Erik Doucette at Signature Bank.

Founded in 2006, Signature Bank is a privately held state-chartered bank in Illinois and Wisconsin. As a relationship-based commercial bank, we provide unmatched customer service while operating our business carefully and conservatively. Technology-driven and well-capitalized, Signature Bank is one of the fastest-growing independently owned business banks in the Midwest and has been named on American Banker’s list of “Best Banks to Work For” for seven consecutive years. Reach out to info@signaturebank.bank to learn more.

Erik Doucette is vice president of Commercial Banking at Signature Bank. He brings more than 20 years of experience helping business owners and investors structure financing solutions for acquisitions, growth and succession. Based in Milwaukee, Doucette specializes in relationship-based banking with a focus on thoughtful, tailored capital strategies.

By Bradley Kranich – Senior Vice President, Division Head – Commercial Banking, Wisconsin Market, Signature Bank for Milwaukee Business Journal

Uncertainty is part of business. Economic shifts, industry disruptions and global events can shake even the strongest companies. But in times of challenge — or opportunity — the right banking partner can be your greatest asset, providing financial support and strategic insight to settle nerves and create a sense of security during highs and lows.

A true banking relationship goes beyond transactions. It provides stability, expertise and proactive guidance that can make all the difference in your business’ success. So, how do you build a strong partnership with your commercial bank?

Know your business, know your bank

A solid banking relationship starts with a deep understanding of your financial needs — both now and in the future. Instead of being just a service provider, your bank should be a strategic partner that supports your business with lines of credit, cash management and treasury services, evolving with you as your needs change.

As a business owner, keep asking yourself and your leadership team:

• How are we managing cash flow?
• How are we preparing for the next seasonal business cycle?
• What would an acquisition look like?
• What is our succession plan?

Be open to having these conversations with your banking partners. Your bank should not only help you answer these questions, it should anticipate them. A proactive commercial banker will guide you toward financial solutions tailored to your company’s growth trajectory.

Deal with decision-makers, not bureaucracy

When it comes to business banking, the lowest loan rate isn’t always the best deal. What truly matters is access to decision-makers who understand your business and can act quickly.

Many banks operate with layers of bureaucracy, slowing down decisions when you need them most. Instead, seek out a banking partner with direct decision-making authority — someone who can provide real solutions in real time.

Your story matters — make sure your bank is listening

Numbers are meaningful, but so is your story. A good banker doesn’t just look at your financial statements — they take the time to understand your company’s journey, challenges and aspirations.

Does your bank understand the nuances of your industry? Whether you manufacture specialized components, manage a multi-location restaurant or grow seasonal products like Christmas trees, your banker should have industry expertise and insight into your financial cycles.

The best banking relationships are built on in-depth conversations — not just about net income and collateral, but about your vision for the future.

Trust: The foundation of a strong banking relationship

Trust isn’t built overnight — it’s earned through consistency, transparency and support in both good times and bad.

A true banking partner anticipates your business needs, rather than reacting to them. Whether you’re selling assets, adjusting payroll or navigating economic uncertainty, your banker should provide proactive guidance and flexible solutions.

If your bank only calls when it’s time for a loan renewal, that’s a red flag. A strong commercial banking relationship means regular check-ins, strategic discussions and an advocate who champions your business’ needs. Can you remember when your banker most recently called you?

Consider the Paycheck Protection Program during the COVID-19 pandemic. Many business owners found themselves scrambling, filling out online applications without direct support. The No. 1 comment we heard was: “I couldn’t speak to a live person.” But those with strong banking relationships had an advocate in their corner — someone guiding them through the process, ensuring they got the funding they needed.

If your banker wasn’t there for you then, what makes you think they’ll be there for you now?

Go beyond the numbers

A strong banking relationship isn’t just about financial statements — it’s about aligning with a partner who understands your vision. Clearly communicating your business objectives while staying true to your story fosters a deeper, more strategic financial connection. The right banking partner offers both stability and flexibility, adapting to your needs through economic shifts.

Keep the momentum going

Business isn’t static and bumps in the road are common. That’s why your banking relationship needs to be active, not passive. Your commercial banker should be a constant presence, not just someone who shows up when it’s time to renew a loan.

Now is the time to assess your current banking relationship — does it truly support your growth? If not, it may be time to explore better options.

Achieve your business vision with personalized commercial banking. Contact Brad Kranich at 414-539-5694 or bkranich@signaturebank.bank.

Founded in 2006, Signature Bank is a privately held state-chartered bank in Illinois and Wisconsin. As a relationship-based commercial bank, we provide unmatched customer service while operating our business carefully and conservatively. Technology-driven and well-capitalized, Signature Bank is one of the fastest-growing independently owned business banks in the Midwest and has been named on American Banker’s list of “Best Banks to Work For” for seven consecutive years.

Bradley Kranich is senior vice president, division head – Commercial Banking for the Wisconsin Market for Signature Bank. Kranich brings 20+ years of experience in commercial banking and privately held industrial businesses. He is a graduate of the University of Wisconsin, Graduate School of Banking.

By Signature Bank for Milwaukee Business Journal

Benz Metal Products, Inc. understands a thing or two about seizing opportunities to build new relationships. The 53-year-old Menomonee Falls company sparked one of its most meaningful partnerships while standing on the sidelines at a children’s football game.

Back in 1972, Anthonie van der Kooy bought Benz Metal after selling his own metal fabrication facility. Now, Benz Metal is run by Anthonie’s three grandsons, Jake, Joe and Jason. The more than 50-person strong company specializes in fabrication, machining, cutting, welding and finishing of metal products for the food-processing, bottling, printing, machine-building and material-handling industries.

Benz Metal CEO Jake van der Kooy recently talked with Signature Bank’s Brad Kranich about how Benz Metal has evolved its business over three generations and what it looks for in its partners.

How does Benz Metal differentiate itself from others in the metal fabrication industry?

One of our big differentiators is our wide array of equipment and services allowing us to be a complete in-house supply chain, making us a one-stop shop for our customers’ metal fabrication needs. We also can do short-run and long-run production. Everything’s done under one roof with us, so it reduces customers’ supply chain reach. The combination of these differentiators always keeps us quite competitive.

How does Benz Metal approach its partnerships with vendors?

We’re always looking for strategic vendor relationships that allow us to change as our business ebbs and flows, and ones that will work on a custom policy for us. It’ll often start out transactional, and if the transaction works, you delve deeper into the partnership.

How has Benz Metal evolved its business over time to meet technology and customer demands?

As the customers’ needs change, we change with them. We’ve made a commitment to grow with them. The technology shifts, too, are based on customer and workplace demands. That’s where you see a lot of equipment and software upgrades. Artificial intelligence also has come into play on some tasks, which helps us get more throughput with the same headcount — whether for quoting projects or even programming machines.

After 50-plus years in business, Benz must have a solid sales team. What is Benz’s sales approach?

We’ve built our business without a dedicated sales team, relying instead on referrals. We take the approach of “sell the relationship, negotiate the order” mentality. So, the customer owns the relationship, not the salesperson — that’s our motto.

With some businesses you might feel like, “I’m just a transaction.” Once a salesperson got their sale, I might never hear from them again. Our customers get to know our whole staff. Everyone on our team plays a role in the sales process in our customer relationships.

The recent nationwide shifts in the banking landscape have left some businesses and consumers wary. What has your relationship with banks been like throughout your 53-year history?

Prior to Signature Bank, Benz Metal had only changed banks twice in our history. We didn’t step into the decision to switch to Signature Bank lightly. We wanted to be sure we made the right choice for our business needs. Once we’ve established a trusted relationship, like we’ve done with Signature Bank, we don’t change that relationship if everyone’s doing their part.

What was Benz Metal looking for in a new bank?

Dealing with a bank can often feel purely transactional. Some banks talk about partnership, but at the end of the day, it’s usually just about the numbers.

We initially chose Wisconsin’s Signature Bank in 2023 to finance our facility expansion and new equipment purchases. We had outgrown our community bank, and we were drawn to Signature Bank’s industry expertise and relationship-based approach.

Signature Bank was the first to go beyond the figures — to truly see our story and invest in it. Of course, the numbers still had to make sense, but they also considered the bigger picture and different perspectives.

How did Benz Metal first get introduced to Signature Bank?

I first connected with Signature Bank through one of their bankers — our kids played on the same football team, and we started talking casually. Later, we ran into each other at a networking group, realized the connection, and continued our conversations. That friendship came first, which is one of the things I truly value about the bank. The professional relationship with Signature Bank came a couple of years later.

What has stood out to you about Signature Bank?

A game-changer for me was how stress-free it has been to work with Signature Bank. Sure, there are reports and numbers to go over, but so much of it is handled through real conversations rather than endless emails and text messages. There was no back-and-forth overload, just a straightforward, get-it-done approach. That efficiency has allowed me to focus on the business without unnecessary stress, which has been incredibly valuable.

Signature Bank also gives us complete control over our financial decisions, allowing us to invest in our business without unnecessary hurdles. With other banks, even a simple equipment purchase can feel like a dissertation. Signature Bank, though, trusts that we know what we need to grow. Their approach — investing in the family — is incredibly innovative.

Achieve your business vision with personalized commercial banking. Contact Brad Kranich at 414-539-5694 or bkranich@signaturebank.bank.

Bradley Kranich is senior vice president, division head – Commercial Banking for the Wisconsin Market for Signature Bank. Kranich brings 20+ years of experience in commercial banking and privately held industrial businesses. He is a graduate of the University of Wisconsin, Graduate School of Banking.

Founded in 2006, Signature Bank is a privately held state-chartered bank in Illinois and Wisconsin. As a relationship-based commercial bank, we provide unmatched customer service while operating our business carefully and conservatively. Technology-driven and well-capitalized, Signature Bank is one of the fastest-growing independently owned business banks in the Midwest and has been named on American Banker’s list of “Best Banks to Work For” for seven consecutive years. Reach out to info@signaturebank.bank to learn more.

Digital banking platforms are a critical piece in an organization’s financial management success. Important features including remote banking, financial reporting, fraud protection, electronic payments and international transactions, embedded in digital banking, allow your team to operate more efficiently, improve cash flow and deliver an overall better customer experience.

At the same time, human relationships still matter when it comes to making important decisions for your business or navigating complex financial challenges. Unfortunately, many banks have taken their “digital-first” approach too far, forcing clients to spend too much time on the technology at the expense of their business. There’s nothing like having a personal contact at your bank to pick up where technology leaves off.

In this article, we’ll look at five areas where digital banking capabilities are stronger when paired with personalized service from your banker.

1. Optimizing Your Digital Banking Platform

Your bank’s digital banking platform alone will not transform the way your business manages the day-to-day finances. Your team must understand how to best use the technology to support your unique business.

For example, if you have multiple entities or subsidiaries, you may want to establish an account structure with sub-accounts or linked accounts across entities. You may want to use the platform’s reporting and analytics capabilities to monitor cash flow, analyze spending or track financial performance against key performance indicators.

These can be complex undertakings that leverage advanced features of your banking platform. Whether it’s helping you set up automated payments to optimize cash flow or customizing reports that offer deeper insights into financial performance, personalized support from your banker can help ensure you get the most from the platform’s capabilities. For example, your bank might offer individualized training sessions or one-on-one consultations to help tailor the platform to your specific needs.

2. Fraud detection and resolution

Attempted bank fraud has become all too common – often as the result of checks stolen from mailboxes or personal information compromised online. Fortunately, the ability to detect and prevent fraud continues to improve. Advanced systems can leverage data, machine learning and AI to detect unusual patterns in transactions and often catch fraudulent activities before they cause significant damage or loss. Real-time alerts can immediately notify businesses when something suspicious occurs.

But what happens next? Once a problem is identified, the real challenge for business owners is to understand the source of the fraud, assess the impact and mitigate any damage. This is where it helps to have a trusted banking partner that can help navigate the situation, assist with discovery, provide advice and solutions to reduce future risk, and offer a general sense of security at a vulnerable time.

3. Merchant Processing

Merchant processing technology has become increasingly sophisticated, allowing businesses to seamlessly accept payments in multiple forms – such as credit cards, mobile payments and online transactions. A banking partner that knows your business and has experience in your industry can help configure merchant processing capabilities and recommend optimal payment gateways, pricing models and fraud prevention measures. Additionally, they can offer insights into trends such as mobile payment adoption rates or the best ways to reduce transaction fees, helping businesses stay ahead of the competition.

4. International transfers

Thanks to technology, international transfers happen more quickly and with lower fees than ever before, while enabling you to manage currency exchange rates and cross-border payments more effectively.

Yet, international transfers come with risks such as fluctuating exchange rates, regulatory hurdles and security concerns. When something goes wrong, you need more than just an automated system; you need a banking partner who can help you navigate the complexities of international payments, resolve disputes and ensure compliance with global regulations.

For instance, a bank might provide access to currency risk management specialists who can offer personalized advice on hedging strategies, or who can help explain the implications of geopolitical events on exchange rates. This level of personalized support adds real value to the technology-driven services banks offer.

5. Reporting and Analytics

Modern banking platforms offer detailed financial reporting and analytics, allowing you to track cash flow, monitor spending and monitor performance. However, data without context can be overwhelming. You need more than just raw numbers – you need to understand what those numbers mean and how they can inform strategic decisions.

A bank that pairs cutting-edge analytics tools with expert advisory services can help you interpret your financial data in meaningful ways. For example, you might receive detailed reports on spending patterns, but a banking advisor can help identify inefficiencies, predict future financial needs or recommend specific financial products based on your unique circumstances. This personalized guidance transforms data from a passive resource into a powerful tool for business growth.

The Perfect Pairing: Technology with a Personal Touch

While digital banking platforms offer an impressive set of ever-expanding benefits, those benefits truly come to life when combined with personalized service from your banker. Whether it’s supporting fraud detection and prevention, helping maximize your digital platform or making sense of complex analytics, the combination of innovative technology offerings and personalized service ensures that your team is maximizing your technology investment to drive your business success.

Signature Bank is known for its tailored approach to relationship-based customer service and use of leading technology to help clients thrive in their unique industries. Signature Bank is the Midwest’s premier, boutique business bank, focused exclusively on serving the needs of privately-owned businesses and non-profit organizations. Learn more at www.signaturebank.bank or contact Penny Foust, Signature Bank’s Certified Treasury Professional at pfoust@signaturebank.bank or 773.499.7157.