The new partnership model, the firm said in a statement, is “unprecedented” and a “first of its kind” and aims to accelerate the firm’s growth and geographical reach and also solve a fast-growing problem in the legal sector.

The model forms part of the firm’s next three-year growth plan, “AFL 3.0”.

A new three-pillar strategy underpins this plan, with brand and client acquisition and expansion of legal service offerings serving as the other two prongs, on top of the new partnership model.

This partnership model, the firm proclaimed, is a “first for the legal industry”, whereby both lawyers and firms are able to partner with, and co-own, a legal practice with the incorporated entity.

Similar models have proven successful in the professional service sector in areas such as accounting, medical, dental, financial advice and vet science, AFL noted, but said that “this is the first time the model is being utilised in the legal sector”.

The model, AFL proclaimed, addresses the “significant challenges” developing across the legal sector in Australia.

The news follows the opening of the firm’s 19th national office, in the Gold Coast, as reported by Lawyers Weekly. Prior to that, the firm unveiled its 18th national office in Wollongong in June as well as its expansion into the Northern Territory late last year.

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Also in June of this year, the firm unveiled an 18-week paid parental leave policy.

In September 2021, the firm spoke with Lawyers Weekly about its plans to be the biggest and best family law firm in Australia.

What the model looks like

Under the model, AFL and its lawyer partners will hold the equity in a firm and provide the entire operational practice platform, end-to-end, including capital to grow the business. Further, AFL will offer succession, funding without personal obligation, supports valuations, and reduces personal risk.

Such offerings, the firm espoused, remove the daily pressures of business ownership to allow lawyers to focus more on the practice of law with clients, without losing a say in the decision making. It, the listed entity, said, “solves the modern dilemma facing the industry”.

The model will be suited for family law solicitors seeking ownership of their career direction within a larger framework, AFL suggested, as well as being compatible with existing family firms.

In conversation with Lawyers Weekly, AFL executive chairman Grant Dearlove said - when asked why such a model is suitable in a post-pandemic market, that change is omnipresent.

“COVID-19 has changed the attitude of law firm owners and lawyers in general. Lawyers are considering ‘what does the future hold?'. The partnership co-ownership model counters these pressures," he posited.

"Law firm owners are no longer on their own. They can partner with a well capitalised high performing ASX law firm that will shoulder all the strategic, change, and operational issues to allow the lawyers to focus on what they do best. This combination has proven to lead to financial success for all." 

Shareholder benefits

The incorporated legal practice’s owners, or shareholders, will benefit from the AFL partnership model, the firm continued.

In addition, it said, to AFL’s acquisition strategy, the additional partnership model of co-ownership and investment in an already-established business “supports AFL’s capacity to continue expanding strategically, reduces risk to all stakeholders, and cures the challenges faced by law firms seeking higher returns in a rapidly changing professional services setting”.

AFL will assume a majority position, it went on, and a traditional shareholder agreement “clearly sets out” the valuation of shares from day one, rights and responsibilities of all shareholders, management and governance terms as well as exit and liquidity conditions in a measured and structured professional setting.

Designed for a new age of change

Speaking about the model, Mr Dearlove said that lawyers in smaller firms are grappling with daily hurdles.

“Pressures around securing more client work, technology changes, managing staff and day to day operations are well documented. In addition, law firm owners are building equity in their businesses that no one wants to acquire or can afford to anymore,” he outlined.

“Modernisation and succession have become a central issue for most law firm owners, to which the AFL Partnership model is the answer.”

The listed firm’s platform, Mr Dearlove continued, is designed for a new age of change in the profession.

“AFL was founded with a mission to disrupt traditional law services by engaging ‘NewLaw’ technologies to operate business and acquire clients through digital marketing, and superior service. It is a platform that is best in market and is available for those who partner with us with the objective of securing growth and financial success,” he submitted.

“Since our inception, Australian Family Lawyers have quickly established a reputation for the quality of our service and the innovativeness of our practice and client service. We’re now the largest specialist family law firm in Australia, with 100 staff in Australia and India working across 19 offices.

“We’re proud to assist over 25,000 Aussies a year, and look forward to our next three-year strategic phase — AFL 3.0.”