At an investor presentation on 8/23/24, Aaron Itzkowitz, the CEO of EmotionTrac made a significant announcement. It pertained to Morgan & Morgan, the largest personal injury law firm in the world. Since 2021, several of the firm’s lawyers had great results from utilizing EmotionTrac’s legal case management solutions to manage their cases. The average revenue per case for EmotionTrac from a Morgan & Morgan lawyer has been $5,000.
Earlier this year Morgan & Morgan, which has more than 1,000 lawyers, and EmotionTrac, began discussions that would lead to an enterprise solution. Upon entering into an agreement EmotionTrac’s solutions would be available for a significant portion of Morgan & Morgan’s cases at discounted prices. The law firm had been analyzing their historical case load over the last several months to identify the potential use of EmotionTrac’s tools.
The announcement made by Mr. Itzkowitz was the feedback that he received from the law firm:
The potential use by Morgan & Morgan’s applicable cases per annum is 70,000.
The company and the law firm have reviewed a sliding scale pricing model that will be based on the law firm’s annual usage. Assuming the lowest price point of $1,000 per case (a 33% discount from the list price of $1,500) for EmotionTrac’s entry level “Case Valuation Test“, the total addressable market for Morgan & Morgan alone equates to $70 million.
Upon the initial 10% of the $70 million being penetrated a $252 million valuation and a $15.00 share price for EmotionTrac could be warranted. This assumes that EmotionTrac’s valuation is based on a multiple of 36 times revenue. It’s the same revenue multiple that Casetext, another private legal technology company, was valued for when it was acquired by Thomson Reuters in 2023 for $650 million of cash. The $15.00 share price does not take into consideration the revenue being generated from the other 150 smaller law firms who are EmotionTrac customers and also revenue from the company’s advertisement testing vertical.
Please note. EmotionTrac’s patent protected Case Valuation Tool is essential for every personal injury lawyer to utilize before they accept a settlement or go to trial. It’s because a personal injury lawyer’s compensation is 100% incentive or contingency based. There is a historical average of 400,000 personal injury lawsuits that are filed annually in the U.S. by 64,331 personal injury law firms. EmotionTrac’s addressable market for its Case Valuation Test alone at Morgan & Morgan’s lowest sliding scale price of $1,000 is an annualized $400 Million.
EmotionTrac has three other legal case management solutions which have an aggregate addressable market of $656 million according to the company. Below are the three other existing solutions and their prices:
- Witness Credibility Test $500
- Fault Assessment Test $1,000
- Trial Prep Analysis $5,000
Upon EmotionTrac finalizing an enterprise agreement with Morgan & Morgan, it would be logical to conclude that EmotionTrac’s valuation and share price would experience exponential increases almost instantly. It would also be logical for EmotionTrac’s valuation to reach $1 billion (share price $62.50) within six to 12 months after a Morgan & Morgan deal is inked. The valuation milestone would enable EmotionTrac to become recognized as a unicorn company. The unicorn status would enable its shareholders to list their shares on Forge.com which is owned and operated by NASDAQ. Forge.com specializes in listing shares held by minority shareholders of unicorn companies for sale prior to a company’s Initial Public Offering.
My 12/15/23, “TWO PATHS FOR EMOTIONTRAC SHARES TO INCREASE BY 25X” report provides the rationale for why either the legal tech or the advertisement testing vertical could drive EmotionTrac’s valuation to $1.0 billion and $62.50 equivalent share price. Both of the revenue producing verticals could potentially drive the valuation to $2 billion and share price to $125.00.
My 01/09/24, “AI’s Achilles Heel Exposed – AI Validation Industry Must Emerge ASAP” report explains why EmotionTrac, because of its patented testing technology, is well positioned to become a leader or even the leader for the validation of generative AI output. Should EmotionTrac be recognized as a leader for AI validation it could instantly reach a $10 billion valuation and equivalent $625.00 share price.
The table on the right side below contains EmotionTrac and the three other digital companies with similar upside potential. The four were listed on SaveChangeWorld.com (SCW) because they shared common traits with the companies on the left side of the table. My research in 2017 of the digital companies on the left when they were in their formative stages enabled me to identify their common denominators. The companies were researched because a $10,000 seed round investment in any one of them increased to between $16 million to $200 million by 2017. A $10,000 investment in any of the four digital companies, which are listed on SCW, has the potential to increase to between $2.33 and $5.80 million by 2028.
For more about my research and how the transformation of the economy to digital from industrial is providing opportunities for the savvy to build dynasty wealth almost instantly read my report or view my video.
For information about EmotionTrac and the three other companies in the above table above (right) or to be alerted for when they have investing rounds available fill out the form below.
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