Heritage Global (HGBL) Investor presentation summary

Business overview

• Operates as an asset-based market maker, creating liquidity for industrial and financial assets through acquisition, disposition, valuation, and lending services.

• Two main business units: Industrial Assets (machinery, equipment, facilities, inventories, real estate) and Financial Assets (receivable and loan portfolios).

• Revenue streams include auctions, valuations, refurbishing and resale, brokerage, advisory, and specialty lending.

• Markets served expand in both growth and stress environments, supporting resilient demand.

Strategic initiatives and acquisitions

• Acquired DebtX, a leading loan sale advisor, to enhance end-to-end valuation and sale execution for loan portfolios.

• DebtX acquisition expected to be accretive in 2026 and expands execution and advisory capabilities.

• Focus on expanding transaction volume, deepening institutional relationships, and increasing advisory and brokerage services.

• Maintains strong liquidity and balance sheet flexibility to support growth and selective acquisitions.

Market positioning and growth drivers

• Positioned to benefit from both favorable and stressed economic conditions, including industrial consolidation and credit stress.

• Economic uncertainty and credit stress are increasing demand for secondary-market liquidity.

• High barriers to entry due to trusted relationships, data security, and execution credibility.

• Long-standing relationships with Fortune 500 companies drive recurring asset monetization.