Private equity managers care about this thing because it is related to whether they can continue to "protect the shell". Everyone is worried to varying degrees that if this registration is unsuccessful, it will be more difficult or even impossible to obtain such qualifications in the future.
Brokers attach importance to legal opinions because it is necessary to enhance the stickiness of private placement as customers and provide one-stop shell-protecting services including legal opinions for private placement customers, which is naturally a supporting measure to retain stickiness.
Lawyers, it goes without saying that private legal opinions have opened up a new business field for them. At first glance, it is a "huge" market and attractive cake.
As the advocacy and demand department of legal opinions, the fund industry association aims to "clean up" some "zombie" private placements through the barriers and thresholds of lawyers, and at the same time make some necessary regulations on private placements that are in urgent need of regulation. Of course, it is also one of its intentions to "convey" the overburdened supervision ability and responsibility through the due diligence and legal opinions issued by lawyers and law firms.
It is against this background that the legal opinions of private placement play a price game.
As private managers, especially those who have never delivered products before, they are often very concerned about the price, especially those who only hire lawyers to issue legal opinions for temporary "shell protection" and can buy them directly for thousands of dollars. Of course, there are also mature private equity fund managers who are well aware of the gold content of legal opinions and are not surprised by the quotation of law firm10-150,000.
As a brokerage company, it is the main initiator and organizer of this "bargaining group" of folk legal opinions, hoping to gain an advantage in price negotiation with law firms through "group buying". "Group buying" is a very eye-catching word, which makes some "group buying" groups have 400 to 500 people, and the smaller "group buying" groups also have 200 to 200 people.
As a lawyer, facing the sudden "huge market", it seems that he has become somewhat at a loss. Many lawyers do this for themselves: "As long as we can seize this opportunity and take a bite, even if the price is not high and the quantity is large, the annual income can exceed 2 million." In this imaginary income dream, lawyers, especially those who rarely touch the new third edition, asset securitization, private debt, equity custody and other businesses, have raised the banner of "bloody battle to the end" with preferential prices. For example, a lawyer of a law firm said, "I make 21,000 orders, and I make 2 million if I make 100 orders." I have to say that this is the idea of "pattern, new slope". Because the "bloody battle to the end" lawyer with preferential price finally found out (1) that he didn't seem to get a few clients; (2) "Group buying" is just a show that brokers intend to let lawyers dump prices on each other; (3) I managed to win one or two customers, and when I entered the site, I suddenly found that the workload was much larger than expected, and it was quite a lot; (4) the legal problems and operational difficulties faced by issuing legal opinions are also unexpected in advance.
As lawyers, there are a large number of rational groups who are not confused by the seemingly beautiful picture. According to my own professional experience, the price of legal opinions is kept at the ladder price of 500-65438+10,000 yuan; Some law firms with brand advantages even lock the price at10-150,000. The ladder price is differentiated by difficulty, calculated by workload and measured by the business model of securities or equity investment.
As a fund industry association, and because of the seemingly surging group buying and dumping prices in the country, I was rushed to hold several press conferences and stressed several times: (1) Don't think that legal opinions are a service model of "giving money = shipping", and lawyers and law firms should bear great responsibilities when something goes wrong; (2) Don't think that the submission of legal opinions will definitely pass, and the association will check and spot check; (three) to encourage the employment of law firms with specific qualification requirements; (4) All lawyers and law firms are requested to cherish their reputations, their licenses and make quotations cautiously.
The "war" continues, but the price temperature has picked up. However, many private fund managers are still on the sidelines, still holding the "prayer" that prices may fall later; The "war" will eventually move towards calm. Once a lawyer practices, it may be after the fund industry association begins to sacrifice the flag.
The lure of business volume has made many lawyers and law firms suddenly wake up after bending over to do practical work; Private fund managers and brokers who are confused by the "floor price" are running out of time. Let's act quickly. If they really need it, the "floor price" may buy the last temporary pleasure and relief.