The future of B. Riley Financial’s wealth management unit is uncertain as the under pressure investment bank is reportedly in talks to sell.
Unnamed sources told Reuters that the firm has begun discussions with Stifel Financial about a potential acquisition of the $26 billion AUM wealth management business which would see more than 400 independent advisors and employees join Stifel. With roughly 60% of these being independent contractors it would boost Stifel’s independent channel which is small compared to its employee headcount of around 2,400.
Although no comments have been made by either side, the source says that the deal would be worth approximately $100 million and would follow moves by B. Riley to shore up its finances which are burdened by debt.
B. Riley is under considerable pressure following a plunge in its share price amid an SEC assessment of whether the firm correctly disclosed risks in some of its assets, and questions about its founder’s interactions with Brian Kahn, the former chief executive of Franchise Group Inc, who stepped down in January after Riley’s leveraged buyout of the firm.
The investment bank recently announced that it has entered into a non-binding commitment for a debt financing of the B. Riley and bebe brands businesses, which would generate approximately $236 million of proceeds to pay down its senior secured debt.
The firm has also entered into exclusive negotiations with a global asset manager to sell a 53% stake in its Appraisal and Valuation Services, Real Estate and Retail, Wholesale & Industrial Solutions businesses (collectively known as Great American Group). This deal currently puts a total enterprise value of approximately $380 million on the business.
Chairman of CEO Bryant Riley commented on the proposed transactions earlier this month saying that while the firm is proud of the returns its portfolio of brands have delivered under its ownership, “… given the opportunities we have in our core middle market financial services businesses, we believe it is the right time to monetize these assets and leverage the proceeds to accelerate debt repayment.”
Last month, Bryant Riley informed the board of directors of his intention to take the company he founded private, with a proposed purchase price of $7.00 per share. He is currently the firm’s largest shareholder with a 24% stake.
August also saw B. Riley Financial served with a delinquency notification letter from Nasdaq as a result of the delayed filing of the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2024.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
