Project Intelligence

Build vs Buy Analysis

Decide between building a new cold storage facility and acquiring/retrofitting an existing one. Model CAPEX, time-to-revenue, risk and expansion optionality — with Optimistic / Base / Pessimistic scenarios.

Build new (greenfield)

Buy existing + retrofit

Scenario:

Build new

Total CAPEX
$8.00M
Time to revenue
18 months
Key risk
Construction risk, permitting, weather delays. Highest scope-drift exposure.
Upside
Fit-for-purpose design, latest refrigerant, warranty from day one, easy to expand.

Buy + retrofit

Fastest to revenue
Total CAPEX
$8.30M
Time to revenue
6 months
Key risk
Hidden defects, refrigerant obsolescence (F-Gas / R-22 residual), locked layout.
Upside
Faster to revenue, existing certifications, brownfield financing familiar to banks.

Decision heuristic (not financial advice)

  • Time-to-revenue < 9 months critical → lean Buy.
  • Design must support ASRS, transcritical CO₂ or GDP pharma → lean Build.
  • Bank/ECA is unfamiliar with your market → Buy (brownfield) often finances faster.
  • Facility must scale 2–3x in 5 years → Build with modular expansion joints.
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