Replacement capital (also usually referred to in German as Ersatzkapital)

Funds set aside to acquire capital shares from investors who wish to sell. Often, the details of a possible takeover by co-owners are contractually agreed in advance – funds set aside for replacement investments, i.e. capital required to renew worn-out parts of the production apparatus (capital required to replace productive capacity depreciated during a reporting period). – See flip, exit, investment.

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