ATG sits at the intersection of thousands of auctioneers wanting to build a competitive online presence and millions of bidders seeking unique and specialised items. Our ability to lead the transformation of the auction industry underpins our key investment pillars.
Our Investment case
1. A large and growing market transitioning to online
The growing popularity of auctions as a channel for secondary goods sales as well as the structural shift online of the industry creates positive tailwinds for ATG. The growing attractiveness of secondary goods due to the value they offer, as well as their sustainability credentials, should also provide a positive tailwind for ATG.
2. Unparalleled competitive position
Our marketplaces rank first in each of the geographies and verticals in which they operate, generating a low cost to acquire bidders and new inventory. A critical mass of bidders generates higher realised prices for second-hand items; this in turn attracts more asset listings on our marketplaces. Our shared success model ensures our auctioneer partners are able to grow alongside us.
3. Scalable proprietary auction platform technology
Our technology enables incremental volume and market share gains at low marginal cost. We also acquire new bidders cost effectively. This combination enables high margin profitable growth. We invest steadily to ensure we can scale and innovate at a pace unmatched by competition.
4. Six proven growth drivers underpin our success
1. Extend the total addressable market
2. Grow the conversion rate
3. Enhance the network effect
4. Expand operational leverage
5. Grow the take rate via value-add services
6. Pursue accretive M&A
5. Proven attractive financial model
We have a strong track record of growth. Our exposure to a mix of industries and geographies, combined with the development of a steady stream of new revenue sources, results in a cyclically diversified revenue base. Our high operational leverage leads to attractive and expanding profit margins and our capital-light model ensures strong cash generation.
6. Experienced team capable of execution
Our team has a broad range of technological, commercial and e-commerce experience combined with a deep understanding of the auction industry. In the last year, we have added to the breadth and depth of our team to ensure we are well placed to pursue the multiple opportunities on front of us.