Ascension’s Growth Strategy

Ascension enters markets by acquiring recognized
foundation agencies with $7.5M to $40+M in
revenue (“Hubs”) whose owners desire to liquify
their ownership while continuing to manage and
grow their business. Once a Hub is established,
Ascension expands its market presence by acquiring
additional general Property & Casualty, Specialty Risk
Management, and Employee Benefits agencies
with $0.5M to $5.0M in revenue (“Spokes” and “Fold-ins” and “Book Purchases”)
[read more]

What Could You Save if You Sold Your Agency in 2008?

Use our capital gains calculator to estimate how much you can save in capital gains taxes.

More topics that may interest you:

• Why Ascension was a great move for my agency

  Todd Bryant, Bryant Wharton, Atlanta, GA

  “With a potential capital gains tax hike in the near future, we felt the time was right for us to sell our agency, and we looked at [Read More]
  

  various options. Ascension was attractive to us because their business model allowed us to implement our succession plan, continue to grow the business, and import best practices from agencies across the country. Ascension has supported and recognized our autonomy 100%. With other organizations, you might have to change your name, your location, commission schedules and perhaps many other things. For us – and for our sales team and employees – nothing has changed, and that has been a significant advantage.”

   

  Bill McCreary, CEO - Tim McCreary, President, EMI, Stuart, FL

  “When we were looking to market our firm, we looked at public brokers and the large service companies as well as Ascension. We were looking for a [Read More]
  

  buyer who didn’t have too heavy a hand. With Ascension’s light touch philosophy, we were able to keep our identity and our legacy intact, and that was very appealing to us. The culture is very collaborative; it’s flexible and innovative without red tape, and they treat you as if you know what you’re doing as opposed to being office number 175. Ascension offers us support when we need it, with new markets, hiring new producers, and employee benefits, but they also look to us for recommendations in our areas of expertise and listen to what we think works and what doesn’t. They’re just as invested in seeing us grow as we are -- it has turned out to be a really good fit.”

   

  Bob Underwood, President, Pan American, Pasadena, CA

  “When the opportunity to join Ascension came up, we weren’t ‘for sale’, but we were willing to be sold under the right circumstances. We didn’t want to be integrated [Read More]
  

  into another company; we were doing great and just wanted to be left alone to continue on our journey. Ascension has been an amazing fit -- Len Kline is very supportive but doesn’t interfere with us. As long as you make your numbers, you’re in control, and for us, it’s all about growth. Retention is good, but new business is essential. Historically, our business has been agriculture-based, but as the communities around us have evolved, we are looking to expand our expertise in the construction and health care industries. Ascension’s network throughout the U.S. is a great asset because we can access additional expertise to grow outside our traditional markets. Getting involved with Ascension early has been a great leadership opportunity as well as an ongoing growth opportunity for our business. I would recommend Ascension and its business model to anyone considering the sale of their agency.”

• Ascension v. Banks and Brokers:  A Strategic Difference
  If you are like many agency owners, the successful business you have built may be your biggest asset, as well as a significant portion of your retirement plan. At the same time, you may be concerned about the impact of that decision on your customers and employees.
  [ Read More | Close ]
  
  

  Even when M&A activity in the insurance industry was at an all-time high, many sellers had few choices related to the integration after the sale. This atmosphere of “culture crushing” may work on paper, but studies have shown that it also undermines morale, creates conflict and impedes future growth.
  

  
  There are several compelling reasons to consider joining Ascension. Ascension is an attractive alternative as the ‘credit crunch’ reduces the incentive for banks to invest in the agency business, and national brokers view a purchase as a way to increase their top line while eliminating important aspects of your operation.

  
  

  The Ascension model represents a major shift from an institutional approach. When you join Ascension, you are not simply selling your agency; you are also investing in a dynamic opportunity to become part of an enterprise that values differing cultures, technical and product success.

  
  Ascension is not burdened by the bureaucracy of bank ownership or other large brokers. Agency owners reap the advantages of selling their business, retaining equity ownership in Ascension, and tapping new capital and expertise to grow their business. All this, while preserving the identity, culture, relationships and day-to-day management structure now in place.
  
  Ascension’s resources are available across our network to accelerate growth and increase retention, including:

  
  

  • New products that will enable product expansion opportunities within your existing customer base;
  • Additional management and training to producers to increase sales volume; and marketing support and intelligence;
  • Access to large carrier relationships to drive additional sales.

  
  
• Private Equity Partners with Insurance Focus and Expertise

  Ascension and its strategy are backed by some of the most knowledgeable private equity firms in the insurance industry. Our partners have deep industry experience and relationships. With their capital and our shared expertise, we are on track to build Ascension to $200 million in revenue in five years.

  
  
• How do I value my agency?

  Agency value is determined by annual earnings and ongoing internal growth. Acquirers review an agency’s new business activity, renewal retention rates, and an agency’s sales culture.

  
  
• How do I transition my employees?

  When Ascension purchases your firm, you can expect very little to change. Each purchase includes an earn-out arrangement, typically structured for two to three years. Our mission – and our strength -- is to create a premier insurance agency while rewarding a professional environment that preserves the expertise and culture that made each operation successful.

  
  
• What are the tax implications of selling my firm?

  Many analysts believe that any new administration will raise capital gains taxes from 15% to as high as 30%, making this a critical time to consider alternatives. Owners who sell before that change could keep as much as 10% to 15% of their enterprise value.

You have my personal invitation to contact me directly.
Len Kline, President and CEO,
816-842-1332
info@ascensionnc.com