Verabrede dich zum Casen über das Meeting-Board, nimm an Diskussionen in unserem Consulting Q&A teil und finde gleichgesinnte Interview-Partner:innen, um dich auszutauschen und gemeinsam zu üben!
Zurück zur Übersicht

Greenfield and Brownfield Investments

Hi!

I have a few questions about Greenfield and Brownfield investments and how to think about them. My understanding is that Greenfield investments are when a company builds facilities from the ground up in a foreign country while Brownfield investments are when companies build off of existing facilities, such as an existing business.

My follow-up questions are:

  1. Is Greenfield considered organic expansion and Brownfield considered inorganic?
  2. If so, does Brownfield encompass M&A? Or is it more closely related to partnerships/joint ventures?
  3. Are Greenfield/Brownfield only applicable to international expansion?
  4. Are these terms only applicable to the development of land/property or can they be applied to business development as well (i.e. expanding product offerings to new markets)? 

Any insights would be appreciated, thank you!

5
300+
11
Schreibe die erste Antwort!
Bisher hat niemand auf diese Frage reagiert.
Beste Antwort
Mihir
Coach
bearbeitet am 24. Mai 2025
McKinsey Associate Partner and interviewer | Bulletproof MBB prep

Good questions! Let me put my answers below.

1. They can both be organic or inorganic - depends on the context. As an example: if I upgrade my existing factory in order to manufacture a new product: that is an organic, brownfield investment. If I buy another company so that I can access and upgrade their factories: that is an inorganic brownfield investment. Greenfield vs. brownfield is determined by whether the facility is brand new, or whether it’s been upgraded. Inorganic vs. organic is whether M&A is involved. You can’t fully conflate the two.

2. See above. Greenfield vs. brownfield is purely about whether you’re building a new facility or upgrading / changing an existing one. It’s not about whether M&A or partnerships are involved.

3. No - I could develop or build a greenfield site in my domestic/home market

4. It’s mostly about land/property/facilities/O&G or mining leases. I’ve never heard it used to describe product expansion in any other context. 

Hope this helps!

Alessa
Coach
am 28. Mai 2025
xMcKinsey & Company | xBCG | xRB | >400 coachings | feel free to schedule an intro call for free

Hey!

Your understanding is already quite solid! Just to clarify:

Greenfield and Brownfield are about how a company sets up operations—not necessarily where or whether it's organic or inorganic. Greenfield means building new from scratch, Brownfield means modifying or acquiring existing assets. So yes, Brownfield can be either M&A (inorganic) or internal upgrades (organic). Same with Greenfield—it could be internal expansion or a joint venture.

They’re not limited to international expansion—you can absolutely have domestic Greenfield or Brownfield investments. And yes, the terms are generally used for physical assets (factories, infrastructure, energy projects), not for product launches or general business development.

Best,
Alessa :)

Pedro
Coach
am 25. Mai 2025
Bain | EY-Parthenon | Former Principal | 1.5h session | 30% discount 1st session

Greenfield means "brand" new. Brownfield means using something that already exists.

M&A, Geography, etc., has no impact on this. 

I've never seen it being applied to product expansion or entering a new market. Usually is related to investment in infrastructure / facilities.

am 27. Mai 2025
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates

Hi there,

I see you've received several great explanations already.

I just wanted to add that consulting interviews—for more roles—do not test for your knowledge but your skills. 

So if you happen not to know a term or a formula, feel free to politely and proactively ask the interviewer to clarify it. 

If you do happen to know such terms, it can help, but it's not a must. 

Best,
Cristian

Hagen
Coach
am 30. Juni 2025
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience

Hi there,

I would be happy to share my thoughts on your questions:

  • First of all, the Greenfield/Brownfield concept does not seem to match perfectly with the organic/inorganic one. While Greenfield projects seem to be always organic, Brownfield projects are not always inorganic, e.g., if you license your products.
  • Moreover, Brownfield includes M&A, joint ventures, strategic partnerships, and other types.
  • Lastly, the Greenfield/Brownfield model can also be applied to product development and operational investments.

If you would like a more detailed discussion on your specific situation, please don't hesitate to contact me directly.

Best,

Hagen

Ähnliche Fragen
Consulting
Had a case where your client is the owner of a large zoo and he has an opportunity to participate in an auction for 2 dinosaur eggs. It's a one time auction so you can only make one bid. You have to recommend how much he bids for these eggs.
am 26. Aug. 2024
Global
2
1,5k
Beste Antwort von
Hagen
Coach
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
43
2 Antworten
1,5k Aufrufe
Consulting
IB -> Consulting. Fit interview?
am 27. März 2025
Global
7
700+
Beste Antwort von
Evelina
Coach
EY-Parthenon (7 years) l BCG offer holder l 97% success rate l 30% off first session l free 15' intro call l LBS
20
7 Antworten
700+ Aufrufe
+4
Consulting
Can you lateral to MBB in 2025?
am 18. Dez. 2024
USA
6
1,7k
Beste Antwort von
Thabang
Coach
Ex-McKinsey Consultant | McKinsey Top Coach & Interviewer | Special Offer: Buy 1 Session Get 1 Free (Limited time!)
15
6 Antworten
1,7k Aufrufe
+3