Enters
into Agreement with Stifel Financial Corp. to Sell a Portion of Wealth
Management Business
LOS ANGELES, Nov. 1, 2024 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the
"Company"), a diversified financial services company, today announced
that it has signed a definitive agreement to sell a portion of its traditional
(W-2) Wealth Management business to Stifel Financial Corp. (NYSE: SF)
("Stifel") for estimated net consideration of $27 million to $35
million in cash. The transaction does not include B. Riley's approximately 190
independent advisors and 90 tax professionals. Subject to the terms of the
agreement, the final consideration will be based on the number of advisors that
join Stifel at closing. An expected 40 to 50 advisors, along with the
associated customer accounts, will transition to Stifel in early 2025. The
accounts represent total assets under management (AUM) of approximately $3.5
billion to $4.5 billion as of September 30th, 2024.
Bryant Riley, Chairman and
Co-Chief Executive Officer of B. Riley Financial, commented:�"The past year has
proved disruptive to our Wealth Management business, with competitors taking
advantage of the noise surrounding our principal investments business. We
decided to take a proactive approach for those who wanted a fresh start and found
a well-respected partner in Stifel. The individuals leaving will be able to
transfer their accounts in a point-to-point transaction, with no impact on
their day-to-day responsibilities upon closure. We respect the contributions of
the Advisors who are leaving and are pleased they have found a great home at
Stifel."
Mr. Riley continued, "As
we continue to refocus B. Riley on our core middle market financial services
business, we believe there are substantial benefits and synergies to
maintaining a Wealth Management business in our portfolio.� We are committed to
investing in our core financial services businesses, which remain well
capitalized and have the resources and market expertise to serve our clients
and partners in the small- and mid-cap markets."
Details of the Transaction
The transaction has been
approved by the Board of Directors of the Company and is subject to the receipt
of required regulatory approvals and other customary closing conditions. It is
expected to close early in the second quarter of 2025.
About B. Riley Financial
B. Riley Financial is a
diversified financial services company that delivers tailored solutions to meet
the strategic, operational, and capital needs of its clients and partners. B.
Riley leverages cross-platform expertise to provide clients with full service,
collaborative solutions at every stage of the business life cycle. Through its
affiliated subsidiaries, B. Riley provides end-to-end financial services across
investment banking, 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. B. Riley
opportunistically invests to benefit its shareholders, and certain affiliates
originate and underwrite senior secured loans for asset-rich companies. B.
Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries
or affiliates. For more information, please visit www.brileyfin.com.
Forward-Looking Statements
Statements made 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 today's date. All statements other than statements of
historical fact are forward-looking statements. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the Company's performance or achievements to be materially
different from any expected future results, performance, or achievements.
Forward-looking statements speak only as of the date they are made and the
Company assumes no duty to update forward-looking statements, except as
required by law. Actual future results, performance or achievements may differ
materially from historical results or those anticipated depending on a variety
of factors, some of which are beyond the control of the Company, including, but
not limited to, the risks described from time to time in the Company's periodic
filings with the SEC, including, without limitation, the risks described in the
Company's 2023 Annual Report on Form 10-K and in B. Riley Financial's Quarterly
Reports on Form 10-Q for the period ended March 31, 2024 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 the Company undertakes no duty
to update this information.
Contacts
Investors
ir@brileyfin.com
press@brileyfin.com