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Latest AFL acquisition completes
AF Legal Group has completed its acquisition of a contested wills and estates practice for $2.7 million.
Lauren Croft
AFL, which opened its 20th office in late 2022, has completed its acquisition of the contested wills and estates practice of Go To Court Lawyers (GTC), trading as Armstrong Legal, which has offices in five cities across the country.
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AFL will acquire the key components of this division of Armstrong Legal’s business, including debtors, work-in-progress, client matters and direct staff, for a purchase price of $2,732,724.55 plus GST upfront.
GTC will also be entitled to receive a further two potential earnout payments of up to $375,000 each, “subject to meeting revenue targets and payable after FY24 and FY25 accounts (respectively) have been settled”, according to the ASX announcement.
The acquisition was first confirmed earlier this year in an announcement to the ASX, following the release of its favourable half-year FY24 financial results – which showed a 21 per cent growth in revenue, up to $10.7 million, as well as a new half-yearly record in average weekly revenue.
“Main contributors to the revenue growth were the longstanding brands of Watts McCray and Withnalls. In addition, the newer offices within the Australian Family Lawyers brand of Wollongong, Gold Coast and Bayside have seen significant uplifts in revenue growth since their practices first began about 12 to 18 months ago and as their client lead generation matures. The remaining combined Australian Family Lawyers offices were flat compared to PCP but benefited from stronger performances from AFL Kordos and Australian Family Lawyers WA,” the group stated at the time.
This news also followed the implementation of a new management structure following former legal practice director Grant Dearlove’s resignation in September 2023.
