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Listed national firm to acquire Melbourne-based practice
The board of AF Legal Group has signed a binding heads of agreement to acquire 100 per cent of the assets of a family law firm in Melbourne.
Jerome Doraisamy
In March of this year, AF Legal Group (ASX: AFL), also known as Australian Family Lawyers, announced it was acquiring NSW-based family law firm Watts McCray. That acquisition was formalised in April, and completed earlier this month.
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At the time, the listed entity said that bringing Watts McCray on board would make it the largest family law firm in the country. Now, AFL has continued its growth, announcing it is set to acquire 100 per cent of Kordos Lawyers.
Kordos Lawyers, which was founded 16 years ago following a demerger from a national firm, operated under the name Berger Kordos before changing to Kordos Lawyers. It services more than 150 clients a year and generates an annual revenue stream of $2.5 million.
The consideration to be paid to the vendor of Kordos Lawyers includes upfront consideration of $125,000 in cash and $125,000 in shares in exchange for 100 per cent of its assets. Further to this, AFL noted in its statement to ASX, “a total of $375,000 in deferred cash consideration and $375,000 in deferred share consideration will be paid in three annual instalments subject to minimum performance conditions at the completion of the financial periods ending 30 June 2022, 30 June 2023 and 30 June 2024”.
AFL intends for the transaction to be completed by 1 July 2021, subject to the undertaking and completion of due diligence. The listed entity expects the transaction to be materially earnings accretive.
Kordos Lawyers’ offices are in the Melbourne CBD and it is set to absorb its six lawyers, including three accredited specialists, into AFL.
Speaking about the listed entity’s latest acquisition, AFL executive chairman Grant Dearlove (pictured) said that he is excited to welcome managing partner Bill Kordos and his team to AFL.
“Victoria is the original home of AFL where business commenced only six years ago. Despite our successful growth in the region, the acquisition of Kordos Lawyers will accelerate our significance in the Melbourne market particularly in the more affluent demographic where Kordos Lawyers has practiced so successfully,” he proclaimed.
Mr Kordos added: “The team at Kordos lawyers has always had the aspiration to modernise our service delivery and be part of a national offering. We have observed how successful AFL has been in achieving this to date and are excited to be a part of that journey.
“We believe that our merged business in Melbourne will accelerate the growth of AFL and offer Australians more ways to retain and receive the best family law service possible in our state of Victoria.”
