1.Context: As
the CEO prepared to sign a 10‑year co‑location feedstock agreement, he asked
his team whether an independent commercial review had been performed. The team,
confident in their industry knowledge, said it was unnecessary. The CEO, having
seen James Ray’s expertise on LinkedIn, requested an external assessment before
execution.
2.Assessment: A
comprehensive commercial and contractual review found the proposed agreement to
be unfavorable for
the client (buyer), with significant long‑term pricing risk driven by changing
trade flows, and resulting in an inability to be competitive in target markets.
3.Intervention:
Developed a negotiation strategy and a detailed presentation outlining over
$100M in requested concessions to justify the agreement. The seller
ultimately conceded more than $80M,
significantly improving the buyer’s long‑term profitability.
4.Strategic
Timing:
The review occurred before the buyer committed to co‑location—preserving
negotiating leverage that would have been dramatically reduced once capital was
deployed and operations were tied to the seller’s site, or even an agreement signed.
5.Outcome: The
buyer avoided entering a structurally unfavorable 10‑year agreement and secured
tens of millions in lower pricing, while protecting future margins.
6.Insight: A rigorous, independent contract review
is essential for multi‑year agreements, where even small errors can compound
into multi‑million‑dollar mistakes that
you pay for year after year.