ABSENTEE BIDDER: A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he/she will pay for a given property.
ABSOLUTE AUCTION: An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent, also known as an “Auction Without Reserve.”
AS IS: Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is” and “In Its Present Condition.”
ASSET BROKERAGE: The sale of items that are one of a kind or with a small installed base that are not conducive to a traditional auction sale.
ASSET STABILITY RATING: Information provided as part of Heritage Global Partners Asset Advisory Services and Appraisals. The rating includes qualitative information on asset installed base, expected technological and financial obsolescence as well potential off-shore value. Also referred to as the “story behind the numbers.”
ASSET VISIT SERVICE: A service provided by Heritage Global Partners to inspect and provide pertinent information to prospective bidders. Visits are made by either an in-house expert or a knowledgeable global partner in that asset sector and geography.
AUCTION WITH RESERVE: Also known as “Reserve Auction” and “Auction Subject to Confirmation,” an auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids, or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer.
BANK GUARANTEE LETTER: A letter from a bank certifying that a named person is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auction.
BID: A prospective buyer’s indication or offer of a price he/she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.
BUYER’S PREMIUM: An advertised percentage of the high bid added to the high bid to determine the total contract price to be paid by the buyer.
CAPITAL ASSET REDEPLOYMENT ENTERPRISE (C.A.R.E.): A service of Heritage Global Partners to allow corporations of all sizes the ability to load surplus assets into a hosted web based tool and provide instant visibility for users worldwide to see their equipment. C.A.R.E. allows companies to load their assets, view them, decide if they would like to redeploy them within their organization or sell them through HGP into the secondary marketplace.
COMMISSION: The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract prior to the auction.
CONDITIONS OF SALE: The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer’s premiums, possession, reserves and any other limiting factors of an auction. These are usually included in published advertisements or announced by the auctioneer prior to the start of the auction.
CONSIGNMENTS: Sellers that do not have enough goods for an industry specific auction add their items to sector sales with assets of multiple vendors. Each seller’s items are referred to as “Consignments.”
DYNAMIC CLOSE: A process that extends bidding on an asset for a fixed time, five minutes for example, if a bid is received in the final minutes of an auction. The auction continues until there are no bids for the fixed amount of time. This process prevents last minute bid “sniping.”
HGP STAFFED: A service offered by Heritage Global Partners that offers corporate clients a turn key on-site solution, “HGP Staffed,” that decreases internal asset management head count, increases asset return, and dramatically improves cash flow on idle and non-performing assets.
INSPECTION: Specified date, time and place property is available for prospective buyer viewing and evaluation, also known as a “Preview.”
MINIMUM BID: The lowest acceptable amount at which the bidding must commence, also referred to as “Opening Bid” or “Reserve Price.”
ON-SITE AUCTION: An auction conducted on the premises of the property being sold.
ONLINE AUCTIONS: An auction conducted on the internet via our website at www.hgpauction.com. Bidders can bid on any or all assets available for sale up until the sale closes in realtime from anywhere in the world an internet connection can be found.
OPENING BID: The first bid offered by a bidder at an auction.
PREVIEW: Specified date, time and place property is available for prospective buyer viewing and evaluation, also known as an “Inspection.”
PROCUREMENT: A service offered by Heritage Global Partners in which our staff and sector experts work on-site either on a temporary or permanent basis to help management in real time with redeployment, as well as sales and procurement of quality used replacement tools and parts.
RESERVE: The minimum price that a seller is willing to accept for a property to be sold at auction, also known as the “Reserve Price.”
SEALED BID: A method of sale utilized where confidential bids are submitted to be opened at a predetermined place, date, and time. Many government auctions occur in this manner, as they accept bids from around the country and perhaps the world.
SEARCH ENGINE OPTIMIZATION (SEO): Using search engines to help market assets for our clients
SECTOR SALES: Auction sales which feature assets from a particular business sector such as aerospace manufacturing, bio pharma equipment and industrial machine tools. Assets are sold on behalf of various sellers of assets in that sector.
SELLER: Entity that has legal possession and ownership of any interests, benefits or right inherent to the real or personal property, also referred to as a “Consignor.”
SEQUENTIAL CLOSE: The bidding on lots closes sequentially beginning with Lot 1 with each subsequent lot closing at the time interval stated in the auction details page.
SETTLEMENT REPORT: A report issued to the seller/consignor by the auctioneer detailing the financial aspects of the auction.
SUBJECT TO CONFIRMATION: See “Reserve Auction.”
TERMS AND CONDITIONS: The printed rules of the auction and certain aspects of the Purchase and Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale.
WEBCAST AUCTIONS: Using this service, bidders all over the world can bid on the assets for sale at the same time as those in the auction room (bidding requires an account).
Please note that HGP operates two different formats of webcasts: (1) Internet and (2) Teleconference.
For sellers, this realtime bidding feature expands competition for your assets to any bidder globally with an Internet connection or telephone.
Buyers can now competitively bid for assets from their desks, saving time and money on travel expenses. HGP webcast auctions are designed so there is minimal delay experienced by bidders who are not physically at the auction.