I don't know about this. I'm sure there's a kernel of truth to it, but I think the most lucrative source of billings for corp law have more to do with circumstances than with client selection. Being a deal lawyer for an M&A event just generates more hours than a boring company formation.
And the people involved in those M&A events are very often the same people that would have had trouble paying a $550/hr-billed project just a few years ago.
There's another advantage for Orrick: Suppose a growing company were to come to Orrick for help with an M&A event, a VC financing, etc. Now suppose the company's initial corporate paperwork were a stew prepared by non-lawyers (or non-expert lawyers). That would make Orrick's job more difficult. So it's to Orrick's advantage to have the initial corporate paperwork be competent: even though Orrick doesn't necessarily get to bill for doing that initial paperwork, its later work is made easier.
It can also be advantageous in negotiations for Orrick's documents to have become de facto standards.
And the people involved in those M&A events are very often the same people that would have had trouble paying a $550/hr-billed project just a few years ago.