$1.2M
$893K
3.9x
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Profitable, technology-enabled business that helps trial attorneys understand how jurors will react before trial. Using online surveys, the Company tests how people respond to key arguments and evidence — giving attorneys data to sharpen strategy and evaluate settlement risk. Projects are priced per case, are highly profitable, and most attorneys use the service repeatedly across their caseload. Positioned to scale by adding staff, expanding to new firms and practice areas, and introducing new products. The founder — a former trial attorney — is selling a majority interest to a strategic partner while remaining actively involved in the business's growth. 11823
Why we like it
- Earnings quality is strong on paper: roughly $893k in cash flow at a 3.92x multiple is a reasonable entry price for a profitable, asset-light service. Per-case pricing with high margins means incremental projects drop meaningfully to the bottom line without heavy fixed costs.
- The moat is credibility plus repeat behavior. A former trial attorney selling data-backed jury insight to other trial attorneys builds trust that outsiders cannot easily replicate, and the listing states most attorneys use the service repeatedly across their caseload. That repeat pattern creates predictable, referral-driven demand.
- Litigation is durable and largely recession-resistant. Lawsuits get filed and settled regardless of the economic cycle, and the tool directly helps attorneys evaluate settlement risk, which is arguably more valuable when firms want to avoid expensive trials in a tight environment.
- The founder retaining a minority stake and staying involved aligns incentives and de-risks the transition. You are buying a majority position alongside an operator who has skin in the ongoing growth, not someone cashing out and walking away the next morning.
How to improve it
- Codify the founder's expertise into repeatable playbooks and hire additional analysts so delivery no longer depends on one former trial attorney. This is the single biggest lever for both scaling capacity and reducing the key-person risk that caps valuation.
- Convert the per-case model toward a retainer or firm-level subscription for high-volume litigation practices. Anchoring even a portion of revenue to recurring commitments would smooth the transactional revenue and materially raise the exit multiple.
- Expand into adjacent practice areas explicitly named in the listing (new firms, new case types). Personal injury, employment, and product liability firms all test juries, so build targeted outreach and case studies for each vertical to widen the funnel.
- Build a formal referral and account-management engine on top of the existing repeat behavior. Since attorneys already return across their caseload, a light CRM and structured follow-up could increase per-client project frequency without adding acquisition cost.
- Introduce productized add-ons such as focus groups, mock trials, or a self-serve survey tier for smaller cases. The listing flags new products as a growth path, and layering higher-margin or lower-touch offerings expands the addressable client base.
- Systematize the survey panel and data infrastructure to cut variable cost per project. If respondent sourcing is currently ad hoc, negotiated panel access or an owned respondent pool would protect margins as volume grows.
- Formalize a sales function separate from delivery. Right now growth likely depends on the founder's network, so a dedicated business development hire targeting large litigation firms would unlock expansion the founder cannot personally reach.
Diligence notes
- Get actual revenue and a full P&L, since revenue is not disclosed and only cash flow is stated. Understand the exact margin structure, what add-backs are baked into the $893k, and how much of that cash flow depends on the founder's own billable involvement.
- Quantify the key-person risk in detail. Determine what share of client relationships, sales, and analytical work run directly through the founder, and structure the deal so his continued involvement is contractually guaranteed with clear performance milestones given he is keeping a minority stake.
- Examine client concentration and repeat rates with hard numbers. The listing claims most attorneys return, so verify what percentage of revenue comes from the top five or ten firms and what the true reorder frequency and churn look like across a caseload.
- Understand the deal structure and governance carefully. This is a majority-interest sale with the founder staying on, so scrutinize the shareholder agreement, control rights, drag-along and buyout terms, and how future capital and strategic decisions get made.
- Validate the defensibility of the methodology and any technology or IP. Confirm whether the survey platform, panel access, and analytical models are proprietary and transferable, or whether they rely on off-the-shelf tools that a competitor could easily replicate.
Source
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