Transaction
marks a major step toward creating the premier middle market-focused investment
banking platform
LOS ANGELES, January 18, 2022 - B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a diversified provider of business advisory and financial services, today announced it has agreed to acquire FocalPoint Securities, LLC, a leading independent investment bank based in Los Angeles, for total consideration of up to $175 million. The transaction, which will create revenue synergies for both companies, comes as FocalPoint is experiencing significant momentum with $17 billon in closed transactions spanning a successful 20-year history. The combination is expected to more than quadruple B. Riley's pro forma M&A advisory business, while significantly enhancing its debt capital markets and financial restructuring capabilities.
Founded in 2002, FocalPoint specializes in mergers and acquisitions (M&A), private capital advisory, financial restructuring, and special situation transactions. The firm includes approximately 50 investment banking professionals with deep industry specialization in high-growth sectors such as aerospace and defense (A&D), industrials, business services, consumer, healthcare, and technology/media/telecom (TMT). The combination of B. Riley and FocalPoint builds upon the momentum and proven execution capabilities of both firms and is in line with B. Riley's stated intent to expand capabilities in M&A advisory and fixed income. This combination provides strategic and financial sponsor clients with access to both firms' proven execution capabilities and a full suite of end-to-end services from a single platform.
Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said: "FocalPoint is a world class firm known for its ability to handle complex deals with speed, accuracy, and quality. This combination builds on our long and successful track record of acquiring and integrating other complementary businesses that can provide us with additional scale and capabilities to expand our small and middle market leadership. With both companies having started off around the same time, in the same area of Southern California, and building meaningful niches within our industries, this deal carries special significance for me. We could not be more excited to welcome the FocalPoint team to B. Riley."
"We've long admired the unique platform the B. Riley team has been building and are thrilled to now become an integral part of it. We have grown tremendously over the last 20 years and believe we will be able to compete even more aggressively in the marketplace going forward," said Nishen Radia, co-founder of FocalPoint.
Sullivan & Cromwell LLP acted as legal counsel to B. Riley Financial. Sidley Austin LLP and Sheppard, Mullin, Richter and Hampton LLP served as legal counsel to FocalPoint. Houlihan Lokey served as financial adviser to FocalPoint.
About FocalPoint Partners
FocalPoint
is an independent investment bank specializing in mergers and acquisitions,
private placements, financial restructurings, and special situation
transactions. With offices in Los Angeles, Chicago, Dallas, New York, and
Shanghai, the firm serves middle-market clients throughout the U.S. Securities
products and services are offered through FocalPoint Securities, LLC. Member
FINRA, SIPC. For more information, please visit www.focalpointllc.com and follow us on LinkedIn and Twitter.
About B. Riley Financial
B.
Riley Financial provides collaborative solutions tailored to fit the capital
raising and business advisory needs of its clients and partners. The Company
operates through several subsidiaries that offer a diverse range of
complementary end-to-end capabilities spanning investment banking and
institutional brokerage, private wealth and investment management, financial
consulting, corporate restructuring, operations management, risk and
compliance, due diligence, forensic accounting, litigation support, appraisal
and valuation, auction, and liquidation services. For more information, please
visit www.brileyfin.com and follow us on LinkedIn
and Twitter.
Forward-Looking Statements
Statements
in this press release that are not descriptions of historical facts are
forward-looking statements that are based on management's current expectations
and assumptions and are subject to risks and uncertainties. If such risks or
uncertainties materialize or such assumptions prove incorrect, our business,
operating results, financial condition, and stock price could be materially
negatively affected. You should not place undue reliance on such
forward-looking statements, which are based on the information currently
available to us and speak only as of the date of this press release. Such
forward looking statements include, but are not limited to, statements
regarding the terms and conditions, and expected results of the FocalPoint
transaction, including regarding expected revenue synergies and the pro forma
impact on our M&A advisory business. Factors that could cause actual
results to differ include (without limitation) the risks associated with the
unpredictable and ongoing impact of the COVID-19 pandemic, revenue synergies
not being fully realized or take longer than expected to be realized, risks
associated with integration, and other risks described from time to time in B.
Riley Financial, Inc.'s periodic filings with the SEC, including, without limitation,
the risks described in B. Riley Financial, Inc.'s Annual Report on Form 10-K
for the year ended December 31, 2020 and in our Quarterly Reports on Form 10-Q
for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021
under the captions "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" (as
applicable). These factors should be considered carefully, and readers are
cautioned not to place undue reliance on such forward-looking statements. All
information is current as of the date this press release is issued, and B.
Riley Financial, Inc. undertakes no duty to update this information.
Contacts
For B. Riley Financial
Investors
Mike Frank
ir@brileyfin.com
(212) 409-2424
Media
Jo Anne McCusker / Scott
Cianciulli
press@brileyfin.com
(212) 739-6753
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Source: B. Riley Financial,
Inc.