Investor/buyer invest a Business
In most cases, buying an existing business is less risky than starting from scratch. When buying a business, investor/buyer take over an operation that's already generating cash flow and profits. Having an established customer base, reputation and employees who are familiar with all aspects of the business. Investor/buyer does’t have to reinvent the wheel--setting up new procedures, systems and policies--since a successful formula for running the business has already been put in place.
On the downside, buying a business is often more costly than starting from scratch. However, it's easier to get financing to buy an existing business than to start a new one. Bankers and investors generally feel more comfortable dealing with a business that already has a proven track record. In addition, buying a business may give you valuable legal rights, such as patents or copyrights, which can prove very profitable. That means does not cost your time and resource to complete this obligated procedures.