This is how much you can earn by drafting a single contract!

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This is how much you can earn by drafting a single contract!
Why is it so expensive to get an SHA drafted or negotiated?
Ramanuj Mukherjee

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In more than one practice area of a law firm, the majority of the partners do SHA related work for a vast majority of their time.
In the course of doing research on this article, I spoke to around 6 lawyers, including law firm partners, individual practitioners, founders of boutique law firms that specialize in investment deals and young lawyers who frequently work with startups at considerably low rates.
Since the advent of the startup economy in India, a lot of lawyers who earlier worked for big law firms and handled big deals, have moved into the startup market to build an independent practice.
The boutique law firms that are known for investment law work will easily charge much more.
Boutique law firms tend to get high quality, specialized work, the partners are known for their specialization, and often command better hourly rates than some of the bigger law firms, especially compared to junior partners at these big law firms.
Such boutique law firms will easily charge 3-4 lakhs for a 10 crore investment or acquisition.
These law firms, especially if not tier 1 firms, tend to be aggressive in matters of pricing.
Earlier all the big deals, where hundreds of millions of dollars were being invested or huge corporations were being acquired, used to exclusively go to the 7-8 big law firms.
Also, the big companies and their in-house legal teams, have come to appreciate that these newer crops of law firms although much cheaper, are no less in service quality than their expensive counterparts.
Big law firms are able to charge up to 30-40 lakhs in some large deals for negotiating the SHA or SSPA.
The exclusive knowledge and experience needed to do this work, therefore, develops only in law firms that handle M&A and investment-related work.
Law firms used to charge a premium to draft assignment agreements

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