Can it be a good business?

Why has no-one achieved scale before?
Possibly the economics weren't deemed viable running the "old model" for a family law firm. AFL attempts to introduce a new "efficient" model by reducing reliance on senior lawyers / partnerships (expensive costs), outsourcing paralegal work and doing all customer discovery at a corporate level.

So does it work? (AFL vs Traditional)
-Indirect labour cost(Fixed) 2% vs 16%
-Total labour cost(Fixed) 45% vs 54%
-Overhead costs (ex.Premise) 25% vs 38%
-Marketing expense 6% vs 3%
-PBT 36% vs 12%

Still early, but the company is gaining some decent economics in alignment with what they're trying to achieve.

Will it continue to work?
Depends on the customer acquisition model - Can they get they achieve and maintain that virtuous cycle which allows them to expand?
Depends on how the lawyers are incentivized - Does this business model enable/incentivize them to care for the customer? Or will they end up fee collectors?

Competitive note
Obviously difficult for incumbents to compete or they'll need to redo their own business model (suicide) and harder for private companies to attempt scale due to lack of access to capital.


Well its obvious listed law firms aren't popular at the moment (SGH, SHJ), however at 13m Mcap with a tested (still early) business model differentiated from competitors with a decent runway (currently 1% of current TAM) and optionality to transition into adjacent markets if the business model works sounds like good risk/reward at this point.

Thoughts?