Make vs Buy / Lease vs Buy Decisions

The Make vs Buy and Lease vs Buy decisions are important strategic choices that companies must make in order to optimize their operations and resources. Make vs Buy refers to the decision of whether a company should produce a product or component internally or source it from an external supplier or even source it internally from a different internal business unit.

The cost and pricing trigger points for these decisions are often a times much more complex and could be pivotal to either increase or decrease profitability substantially, hence why a detailed analytical consideration must be made to aid the accurate decision-making process. The Lease vs Buy decision refers to the choice between leasing or purchasing a product, such as equipment or real estate. Both decisions require a comprehensive evaluation of the costs and benefits of each option, including factors such as production costs, capital expenditures, tax implications, and risk profile. The goal of these decisions is to optimize the use of resources, minimize costs, and improve overall financial performance.