The Lead Manager, Bell Potter, has advised that they have received firm commitments in excess of the $4 million minimum offer size.
OnMarket has a limited allocation and the offer may close early.
Australian Family Lawyers (AFL), is an Australian law firm that practices family and relationship law. The firm provides advice to clients in respect of divorce, separation, property and children’s matters together with ancillary services such as litigation, wills and estates.
AFL is a law firm with a difference. It was established in 2015 by Edward Finn (Founder and Managing Director) who identified an opportunity to create a disruptive law firm that challenged the conventional wisdom of relationship driven business development and instead applied an alternative model driven by data and digital marketing. The Company’s business model combines cost effective revenue generation and operating efficiencies to achieve higher profitability metrics than benchmarked traditional competitors.
With revenues of $4.8 million in FY2018, an increase of 86.9% on FY2017, the Company has shown significant growth along with an EBITDA margin of over 27% for H1 FY2019.
The Family Law market in Australia is worth an estimated $1.1 billion in revenue and is highly fragmented and well suited for consolidation. No family law firm currently has an identified national presence. AFL’s objective is to become the market leading provider of Family Law services in Australia.
The issuer of the prospectus is Navigator Resources Limited (ASX: NAV), an ASX listed company. Upon completion, NAV will acquire 100% of the issued capital of AF Legal Group Pty Ltd and will change its name to AF Legal Group Ltd and trade under the ticker ASX:AFL. For more information, please refer to the Prospectus.
AF Legal Group Ltd is seeking to raise between $4 million and $6.5 million and will have a market capitalisation of approximately $12.6 million at maximum subscription.
The purpose of the Offer is:
Family law services involve matters concerning the family court, such as divorce, property settlement and children’s matters. AFL research indicates that the Family Law market size is approximately $1.1 billion per annum in fees, or 15.5% of the $7 billion Personal Legal Services market.
Divorces, and the breakdown of de-facto relationships largely account for the demand for law firms and practitioners that specialise in family law. The total number of divorces granted in 2017 was 49,032. Although this level has remained relatively stable over the last 10 years, growth in the breakdown of de-facto relationships and increasing levels of household wealth will likely drive increasing demand for family law services.
The Australian legal services market remains highly fragmented. The level of fragmentation is even more pronounced in the Personal Legal Services market, and its Family Law segment. In contrast to the personal injury sector in Australia which has a number of dominant and high-profile market players (e.g. Slater & Gordon, Shine and Maurice Blackburn), there is no dominant or national player in the family law market. This is despite the fact that the two markets are of a similar size. This contrasting phenomenon highlights the unique opportunity that exists for AFL to lead consolidation in the sector and become the first player of scale in the family law market in Australia.
The company has developed an innovative method for the acquisition of clients requiring family law advice. The method is substantive in its design and application which would make it difficult to replicate in the short term. This client acquisition model is titled “DSAS”. DSAS harmonises 4 components that can capture and convert new clients in any jurisdiction in Australia
AFL believes that its business model is clearly differentiated from traditional legal firms, and challenges the conventional wisdom of relationship business development.
AFL’s points of difference drive superior financial performance to its peers as benchmarked against the Australasian Legal Practice Management Association (ALPMA) 2017 survey conducted by Crowe Horwath. A summary of the results for the industry cohort of less than $5m turnover is shown below.
AFL believes its model is more scalable and profitable than competitors due to its:
A summary is provided below of the historical performance of AF Legal Group (excluding NAV) on a reported and underlying basis.
You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. AF Legal Group Ltd is subject to a range of risks, including risks associated with the reliance on marketing strategy, regulatory environment and legal reform, reliance on key personnel, failure to retain or attract clients and operating in a competitive market. Please refer to Section 5 of the prospectus for further details.
Section 734(6) disclosure: The issuer of the securities is Navigator Resources Limited ACN 063 366 487 (to be renamed AF Legal Group Ltd). The securities to be issued are ordinary shares.The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).
OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.
Tap 'More Info' to get access to free research, all company releases, and invest instantly for shares.
The Company has received firm commitments in excess of the $4 million min offer size.
Australian Family Lawyers is an Australian law firm specialising in family and relationship law. By using innovative and cost-effective digital marketing techniques to acquire clients, AFL’s strategy is to become the largest firm in the $1.1 billion Australian family law market. The business model combines cost effective revenue generation and operating efficiencies to achieve higher profitability metrics than benchmarked traditional competitors. With revenues of $4.8 million in FY2018, the Company had revenue growth of 86.9% from FY2017.
Update: Pre-money valuation reduced from $15m to $10m to facilitate additional institutional support. The IPO has been restructured in response to market feedback to ensure its success and to support a strong aftermarket.
Koligo Therapeutics Ltd (ASX: KOL) is a US biotechnology company focused on the development and commercialisation of a range of cell therapy, three-dimensional (3D) bioprinted tissue and other regenerative medicine products for serious unmet medical needs. Koligo has successfully commercialised and has commenced selling its first cell therapy transplant product, Kyslecel™, for the treatment of chronic pancreatitis patients, generating $1.6 million in revenue from sales of this product.
Offer closed via OnMarket.
AXS Group Limited (ASX Code: AXS) is an integrated software solution provider to the finance, insurance and funds sector. With over 40 clients in Australia, North America, Europe and Asia they are focussed on helping clients with their digital transformation, reducing time and cutting costs. The Company’s cloud based ARMnet platform currently is used to manage over $100 billion of assets and transactions that are accessible via smart phones, tablets or email from anywhere at any time.
Australian Nutrition & Sports Ltd (ASX: AN1) is focussed on the development, branding and distribution of its own high-quality milk formula, health and wellness products for sale in Australia, China, Hong Kong, with plans to expand into further Asian markets over time. Currently focused on infant and adult milk formula products, protein-based health and wellness nutritional supplements, the company has successfully commercialised a number of products in Hong Kong with distribution through ~350 pharmacies. Expansion into the Chinese market is supported by production agreements with export approved Australian manufacturers.