Heritage Global (HGBL) Planet MicroCap Showcase: VEGAS 2025 summary

Company overview and business model

• Operates as a 15-year-old Nasdaq-listed firm with an $80 million market cap, consistently profitable for over seven years.

• Focuses on two main segments: financial assets (primarily charged-off loans) and industrial assets (auctions, lending, valuation).

• Pioneered the market for selling written-off loans, now serving both major and regional banks, as well as fintech and alternative lenders.

• About half of financial asset revenue comes from alternative lending, including buy now, pay later platforms.

• Industrial asset business conducts around 200 auctions annually, serving major global corporations in sectors like pharma, defense, and food.

Market trends and growth drivers

• Surge in credit card and auto debt post-pandemic is expected to drive a wave of charge-offs and asset sales starting mid-year, with growth projected for two years.

• Increased corporate focus on repurposing surplus assets and right-sizing operations is fueling auction activity.

• Supply chain disruptions and tariff concerns are raising demand and value for used equipment.

• Layoff announcements create a delayed but predictable pipeline for surplus asset sales.

• Macro trends indicate a favorable environment for both financial and industrial asset sales over the next two to three years.

Strategic positioning and outlook

• Maintains profitability through disciplined operations and adaptability to market cycles.

• Focuses on sectors with long-term domestic presence, such as pharma and defense, to ensure sustainable growth.

• Expects significant growth as current economic and industry trends convert into increased supply for auctions and asset sales.

• Emphasizes execution capability and a track record of navigating various economic climates.

• Positions itself as a beneficiary of both economic expansion (M&A) and contraction (layoffs, plant closures).