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
Media
press@brileyfin.com
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SOURCE B. Riley Financial
