Here are 1-3 brief analogies for Heritage Global:

• Like eBay for industrial and financial assets.
• Like a specialized Sotheby's for business assets, including machinery, intellectual property, and accounts receivable.

• Market Making: Facilitating the buying and selling of financial and industrial assets.
• Acquisitions: Services for identifying and purchasing various tangible and intangible assets.
• Dispositions: Services for selling, liquidating, or monetizing assets.
• Valuations: Expert assessment services to determine the worth of assets and business enterprises.
• Secured Lending Services: Providing loans backed by collateralized assets.

Heritage Global (HGBL) primarily serves other companies (business-to-business). Specific major customer names are generally not publicly disclosed by the company in its filings due to the nature of its services (asset advisory, auctions, and dispositions).

However, based on its business operations as an asset services company, its major customers fall into the following categories:

1. Corporations: This includes a wide range of companies, from small and middle-market businesses to large multi-national and Fortune 500 corporations. These customers utilize Heritage Global's services for the disposition of surplus industrial machinery, equipment, inventory, manufacturing facilities, or entire business enterprises, as well as for acquiring such assets or intellectual property.
2. Financial Institutions: Banks, secured lenders, and other financial entities are customers for services such as asset valuation, secured lending against various asset classes, and the liquidation or disposition of repossessed or distressed assets.
3. Private Equity Firms: Investment firms that are actively involved in mergers, acquisitions, and divestitures frequently engage Heritage Global for the valuation, acquisition, or disposition of assets belonging to their portfolio companies or for entire businesses.

Ross Dove, Chief Executive Officer and President

Ross Dove began his career over forty years ago, joining his father and grandfather at a family auction house in San Francisco. He pioneered numerous advancements in the industrial asset and commercial property auction industry, growing the firm into one of the world's largest. He and Kirk Dove re-acquired the family firm, renaming it "Dove Brothers," and later re-launched the family legacy as "Heritage Global Partners, Inc." Mr. Dove was appointed CEO of Heritage Global Inc. in May 2015. His success has been widely chronicled in major publications, and he is a founding member of the Industrial Auctioneers Association (IAA) and a recipient of its Lifetime Achievement award.

Brian Cobb, Chief Financial Officer

Brian Cobb was appointed Chief Financial Officer of Heritage Global Inc. in May 2022. He joined the company in 2017 as Director of Financial Reporting, later becoming Corporate Controller in 2019. In this role, he was instrumental in the company's transition from the OTC market to Nasdaq and its public offering in 2020. Prior to his appointment as CFO, he served as Vice President of Finance starting in 2021. Before joining Heritage Global, Mr. Cobb accumulated over 10 years of accounting and managerial experience, primarily at PricewaterhouseCoopers.

Nicholas Dove, President, Industrial Assets Division

Nicholas Dove serves as the President of Heritage Global's Industrial Assets business. He was previously the Executive Vice President of Heritage Global Partners (HGP) and is involved in the family business alongside his brother, Ross Dove.

David Ludwig, President, Financial Assets Division and Director

David Ludwig is the President of the Financial Assets Division and a Director at Heritage Global Inc. He has over thirty-two years of experience in the receivables management industry. He was previously the President of National Loan Exchange (NLEX), which was divested by Dove Brothers to him, and he subsequently advanced it into a leading loan sale advisor of charged-off and nonperforming assets.

James Sklar, Executive Vice President, General Counsel and Secretary

James Sklar holds the positions of Executive Vice President, General Counsel, and Secretary at Heritage Global Inc.

The key risks to Heritage Global (HGBL) include significant concentration risk and default within its specialty lending segment, the business's high sensitivity to economic volatility, and intensifying competition leading to margin pressure.

1. Specialty Lending Concentration Risk and Default: Heritage Global faces substantial credit and earnings risk due to a significant portion of its gross notes receivable being tied to a single borrower within its Specialty Lending segment who is currently in default. This borrower represents approximately 66% to 76% of the gross notes receivable, creating a concentrated risk exposure. Related loans have been placed on a nonaccrual basis, and the recovery of funds depends on collections from underlying charged-off receivable portfolios.
2. Economic Volatility and Macroeconomic Sensitivity: The company's financial performance is highly susceptible to macroeconomic cycles. Economic downturns, periods of tighter credit, or specific shocks within the sectors it serves can significantly reduce transaction volumes and the value of assets, thereby impacting fee-based revenues and overall profitability. Economic volatility may also increase counterparty risk and delay asset sales.
3. Heightened Competition and Margin Pressure: Heritage Global operates in a competitive environment for its asset valuation and disposition services. Increased competition poses a risk of margin compression and potential erosion of market share if rivals offer lower pricing or utilize superior technology. This competitive landscape can adversely affect the company's revenues and valuation.

Industrial Asset Transactions (Acquisitions, Dispositions, Brokering Manufacturing Facilities, Surplus Industrial Machinery and Equipment, Industrial Inventories)

• The global industrial auction services market was estimated to be approximately USD 8.5 billion in 2023 and is projected to reach USD 16.2 billion by 2032.
• The global hard asset equipment online auction market was valued at USD 16.23 billion in 2025 and is projected to reach USD 88.03 billion by 2035. North America holds nearly 38% of this market.
• The global online auction market size, which includes B2B goods like industrial equipment, was approximately USD 19.6 billion in 2024 and is expected to reach USD 55.95 billion by 2033.
• The IT Asset Disposition (ITAD) market, which encompasses the secure disposal and recovery of IT equipment, was valued at USD 29.74 billion in 2024 and is projected to grow to USD 90.77 billion by 2033 globally. North America is projected to lead this market with an estimated 35% share in 2025.

Financial Asset Transactions and Secured Lending (Accounts Receivable Portfolios, Secured Lending Services)

• The global accounts receivable financing market was valued at approximately USD 400 billion in 2023 and is projected to reach about USD 700 billion by 2032.
• Another estimate places the global accounts receivable financing market at $180 billion in 2024, with a projection to reach $277.68 billion by 2030. North America was the largest region in this market in 2025, and the United States dominates with an estimated market share of over 40%.

Intellectual Property Transactions (Acquiring or Brokering Intellectual Property)

• The global intellectual property services market was valued at US$ 4.2 billion in 2024 and is projected to reach US$ 14.3 billion by 2035. North America dominated this market in 2024, holding a 37.4% revenue share.
• A more specific segment, the brokered patent market, was estimated at $290 million in 2020.

Business Enterprises (Acquiring or Brokering Business Enterprises) and Valuations

• The global business valuation service market size was valued at US$ 14,250 million in 2023 and is forecast to reach US$ 21,220 million by 2030.
• Other estimates for the global business valuation service market indicate a size of $8.03 billion in 2025, growing to $11.75 billion in 2030, or starting at an estimated value of USD 246.5 billion in 2026, on track to hit USD 2021.3 billion by 2035. North America leads this market, accounting for approximately 42% of global demand.
• The global corporate valuation service market size was valued at USD 2,427 million in 2024 and is projected to grow to USD 3,579 million by 2032. North America dominates this market.

Here are 3-5 expected drivers of future revenue growth for Heritage Global (HGBL) over the next 2-3 years:

1. Continued Growth in Industrial Asset Transactions: Heritage Global anticipates sustained positive trends within its Industrial Assets division. This growth is expected to be fueled by heightened macroeconomic pressures, which are increasing activity in the company's auction business. The company aims to capitalize on key auction and liquidation opportunities.
2. Increased Volume in Financial Asset Transactions: The Financial Assets division is positioned for continued growth due to macroeconomic factors such as record consumer debt and a rise in charged-off credit cards and non-performing loans. The company's brokerage segment has expanded its client base, directly correlating with these increased volumes in the market.
3. Strategic Mergers and Acquisitions (M&A): Heritage Global is actively pursuing strategic mergers and acquisitions, with management "aggressively looking at many, many opportunities" as a high priority. The company sees significant opportunities for industry consolidation, potentially leading to a leadership role in large-scale M&A activities. For example, the acquisition of substantially all the assets of The Debt Exchange (DebtX) is expected to contribute to both operating and net income starting in 2026.

Share Repurchases

• On September 13, 2024, the Board of Directors approved an amendment to the share repurchase program, increasing the authorized amount from $4.0 million to $6.0 million and extending the expiration date to June 30, 2025.
• During the year ended December 31, 2024, Heritage Global repurchased approximately $2.2 million of common stock.
• Cash disbursements during the year ended December 31, 2025, included repurchases of common stock totaling $2.6 million.
• A new share repurchase program was authorized on July 31, 2025, allowing for the repurchase of up to $7.5 million in common stock over the subsequent three years.

Share Issuance

• No significant share issuances for capital-raising purposes have been explicitly reported within the last 3-5 years.

Inbound Investments

• No large investments made in Heritage Global by third-parties have been explicitly reported within the last 3-5 years.

Outbound Investments

• Effective January 1, 2026, Heritage Global acquired substantially all assets of The Debt Exchange, Inc. (DebtX) for approximately $8.5 million in an all-cash transaction. This acquisition is expected to strengthen the company's Financial Assets division.
• On August 23, 2021, the company acquired certain assets and liabilities of American Laboratory Trading (ALT).

Capital Expenditures

• Cash disbursements for the year ended December 31, 2025, included an investment of $8.5 million in the new San Diego facility, which serves as the company's corporate headquarters and warehouse space. This facility was opened in February 2025.