Af Legal Group Limited · ASX:AFL
Af Legal — Merger or Acquisition (March 2024)
21 slides from Af Legal's merger presentation, Mar 1, 2024
Slide 1: Time to grow, profitably
Time to grow, profitably Acquisition of Armstrong Contested Wills & Estates and $2.95 million Entitlement Offer 29 February 2024
Slide 2: Important notices and disclaimer
Important notices and disclaimer The following notice and disclaimer applies to this presentation dated 29 February 2024 (Presentation) and you should read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting, acce
Slide 3: Important notices and disclaimer (cont.)
Important notices and disclaimer (cont.) Summary information This Presentation contains summary information about the Company and its subsidiaries (Group) and their respective activities, which is current only as at the date of this Presentation (unless otherwise stated). The information in this Pre
Slide 4: Important notices and disclaimer (cont.)
Important notices and disclaimer (cont.) Forward looking statements This Presentation may contain statements that constitute "forward-looking statements". The forward-looking statements in this Presentation include statements regarding the Company’s intent, belief or current expectations with respec
Slide 5: Important notices and disclaimer (cont.)
Important notices and disclaimer (cont.) Information and liability None of the Underwriter or any of its Relevant Parties, nor the advisors to the Company, have authorised, permitted or caused the issue, submission, dispatch or provision of this Presentation and none of them makes or purports to mak
Slide 6: Stabilisation complete, time to grow profitably
Stabilisation complete, time to grow profitably 6
Slide 7: Stabilisation complete
Stabilisation complete Half Year Revenue excl. disbursements ($000) 12,500 10,713 10,054 10,000 8,615 8,369 8,827 The history of the AF Legal Group shows breakeven profitability across the first three 7,500 6,495 years (FY20, FY21 & FY22) post listing in June 2019 despite significant but largely 5
Slide 8: Time to grow profitably
Time to grow profitably Half Year Revenue excl. disbursements ($000) 12,500 10,713 10,054 10,000 8,827 Our business model is such that our cost base is relatively fixed, primarily but not solely 8,615 8,369 7,500 6,495 5,000 3,933 comprised of the cost of our team members (fee earners and non-fee
Slide 9: Growth Strategy
Growth Strategy Watts McC
Slide 10: Our Growth Strategy
Our Growth Strategy Better leverage our cost base by adding revenue and accordingly gross margin (after fee earner costs) with minimal incremental overhead costs such that our bottom-line profitability grows at a disproportionately higher rate Growing existing Family Law (FL) practices through tea
Slide 11: Executive Summary
Executive Summary Watts McC
Slide 12: Executive Summary – ACWE Acquisition
Executive Summary – ACWE Acquisition ACWE practice manages all aspects of will disputes incl. contesting, AFL will acquire the ACWE division including key components of the challenging and defending wills division being debtors, work in progress, client matters and direct staff ACWE is a divis
Slide 13: Executive Summary – ACWE Acquisition
Executive Summary – ACWE Acquisition ACWE operates on the east coast, in Sydney, Melbourne and Brisbane Alun and two other lawyers in the ACWE team are accredited specialists Alun Hill leads ACWE from the Sydney office and is Doyles’ recommended in wills and estates law Teams will transition
Slide 14: Executive Summary – Entitlement Offer
Executive Summary – Entitlement Offer The Company is seeking to raise approximately $2.9 million (before costs) The Entitlement Offer is being partially underwritten by AF Legal Group by way of a 1 for 4 pro rata non-renounceable entitlement offer to eligible CEO Christopher McFadden ATF the Chr
Slide 15: Macro Trends
Macro Trends Watts McC
Slide 16: “Largest intergenerational wealth transfer in history”
“Largest intergenerational wealth transfer in history” The average number and value of Contested Wills & Estates is an area of law that is leveraged to an increase in asset values. inheritances received by financial year** This not only increases the value of estates, it also increases the number
Slide 17: Armstrong Contested Wills & Estates
Armstrong Contested Wills & Estates 17
Slide 18: Contested Wills & Estates
Contested Wills & Estates Armstrong Contested Wills & Estates has a well-established and high-quality team led by Alun Hill with three accredited specialists in wills and estates law, with Alun himself a Doyles’ recommended Wills & Estates Litigation lawyer Alun has been with the business for 11
Slide 19: Contested Wills & Estates – digital strength
Contested Wills & Estates – digital strength Deal has built in access to all contested estates leads from the Armstrong Legal and Go To Court websites over a period of five years, with these sites being among of the most highly visited non- government legal websites in Australia Seller is incent
Slide 20: Indicative Timetable
Indicative Timetable Date(s) Action 29 February 2024 (Thursday) Announcement on ASX of ACWE Acquisition and Entitlement Offer 5 March 2024 (Tuesday) Trading in AFL shares commences on ex-entitlement basis 7:00pm on 6 March 2024 (Wednesday) Record date for Entitlement Offer 11 March 2024 (Monday) Ent
Slide 21: Thank You
Thank You Watts McC