Spent some time in heartbreak hell lately? Turns out, so did many Aussies. The pandemic made many couples revisit their vows and remove the happily ever after clause. This surge has set the stage for Australian Family Lawyers (ASX: AFL) has decided to merge with GTC Legal Group to create one of the largest personal services legal firms in Australia—a super firm!
GTC Legal Group is the holding company of Armstrong Legal and other legal firm brands. The agreement is subject to satisfaction of customary conditions, including AFL obtaining the required approvals from its shareholders.
The Proposed Merger will create one of the largest personal services legal firms in Australia, bringing in FY22 revenue of $40.8 million, EBITDA of $8.8 million and EBITA of $6.2 million. These numbers exclude immediate and long term revenue and expense synergies that are currently being quantified and expected to be material. The Proposed Merger is unanimously endorsed and supported by the Board of AFL.
AFL Executive Director Grant Dearlove commented, “The merger of AFL and GTC is a seminal moment for the personal legal services industry in Australia with the combined group being uniquely positioned in a $20 billion market ripe for consolidation. For shareholders, it delivers immediate scale, increased revenue and profitability and a more diversified earnings base from family law only to an additional six practice areas.”
According to him, this merger will help the Company gain exposure to the fast growing revenue-sharing platform model which is challenging the traditional law firm model in regions such as the UK. As a result of this merger, AFL’s geographic footprint will increase from 19 to 26 offices under seven quality and recognised brands.
GTC acquired family law and criminal specialist Armstrong Legal in 2019. Since then, it operates across seven segments of personal law, including family law, criminal law, contested estates, civil and commercial, administrative, agency and immigration. The business has 116 employees and seven offices in Australia, thus adding to AFL’s portfolio.
Dearlove added, “The integration of our complementary businesses will drive immediate and long-term increased revenue and expense synergies, with a significant reduction of duplicated costs already identified. The merged group will have a strengthened board and leadership team with proven track records in legal firm disruption and consolidation”.
GTC Managing Director, James Stevens concluded, “Put simply, the merger of GTC and AFL marks the true beginning of the consolidation of the personal legal services market in Australia – a development that is long overdue. The combined resources of the new group will provide it with all the tools it needs to grow and adapt to a rapidly changing world. Our enhanced national presence, top-tier administrative efficiencies and strong record of client acquisition will present a compelling business going forward.”
As Australia’s personal legal services industry gets a makeover, citizens can look forward to more high quality options when it comes to picking their battles, literally.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.