Welcome to our dedicated page for B. Riley Financial news (Ticker: RILY), a resource for investors and traders seeking the latest updates and insights on B. Riley Financial stock.
Overview
B. Riley Financial, Inc. (symbol: RILY) is a diversified financial services firm offering a wide range of solutions including investment banking, capital advisory, and financial consulting services. The firm operates through several wholly-owned subsidiaries and affiliated entities to deliver comprehensive support in areas such as wealth management, corporate restructuring, risk and compliance, forensic accounting, litigation support, as well as asset disposition and valuation. With its robust, cross-platform expertise, B. Riley Financial provides tailored, full-service solutions to public and private companies, institutional clients, and high-net-worth individuals across the United States, Canada, and Europe.
Core Business and Services
B. Riley Financial leverages its integrated platform to serve clients at every stage of the business life cycle. The company’s operations are segmented into key areas that include:
- Capital Markets: Involves investment banking, underwriting, and strategic advisory services that support capital raising and restructuring efforts.
- Wealth Management: Offers tailored investment management solutions and financial planning services designed for institutional investors and high-net-worth individuals.
- Financial Consulting: Provides forensic accounting, litigation support, risk management, and valuation and appraisal services.
- Auction and Liquidation: Manages asset dispositions, including auction and liquidation services with comprehensive valuation analyses.
- Communications and Consumer Products: Extends into areas such as internet access and subscription-based services, complementing its core offerings.
Business Model and Market Position
The company’s robust business model is built on leveraging the diverse expertise of its subsidiaries to offer end-to-end financial solutions. B. Riley Financial generates revenue through a mix of advisory fees, transactional services, underwriting activities, and proprietary investments. Operating across multiple segments, the firm not only meets traditional capital raising needs but also provides specialized advisory in distressed asset situations, complex restructurings, and forensic investigations. This diversified approach enables the company to deliver uncorrelated free cash flow and maintain a resilient balance sheet, even amid market fluctuations.
Expertise and Industry Approach
B. Riley Financial is known for its collaborative, client-focused approach that benefits from decades of industry-specific experience and technical proficiency. The firm’s strategic differentiation comes from its ability to integrate services across investment banking, wealth management, and advisory platforms, ensuring that clients receive comprehensive financial solutions. The emphasis on due diligence, risk and compliance, and forensic accounting underlines the company’s commitment to robust analytical practices and transparency, which are critical in complex financial transactions.
Subsidiaries and Operational Structure
The company operates through a portfolio of subsidiaries that specialize in different areas of the financial services landscape. This structure includes teams focused on capital management, independent broker-dealer operations, and niche advisory services that address asset monetization, restructuring, and valuation. Such a configuration allows for a tailored, flexible approach to meet the varied strategic, operational, and financial needs of its clients. Through its subsidiary B. Riley Securities, for instance, the company has cemented its reputation in the middle market, offering specialized services in equity research and capital structure advisory.
Competitive Landscape and Value Proposition
In a competitive financial services market, B. Riley Financial distinguishes itself by blending traditional investment banking with innovative advisory solutions. The firm’s integrated service model is backed by extensive experience, which enables it to manage both routine and complex financial situations. This capability is particularly beneficial to middle-market companies seeking diversified support without the need for multiple service providers. By maintaining a focus on core financial operations while opportunistically investing in non-traditional assets, B. Riley Financial offers a nuanced, resilient platform that adapts to evolving market dynamics.
Client Focus and Service Excellence
The firm serves a broad spectrum of clients—from rapidly growing middle-market companies and established corporations to high-net-worth individuals seeking capital management and estate planning solutions. Its long history in the industry is a testament to its discipline in managing client relationships, mitigating risk, and executing complex transactions in environments that demand both agility and precision. With a transparent and unbiased approach, B. Riley Financial reinforces investor confidence and demonstrates its commitment to high standards of corporate governance and fiduciary responsibility.
Conclusion
B. Riley Financial, Inc. remains a significant player in the financial services sector by consistently providing integrated, cross-platform financial solutions tailored to diverse client needs. Its methodical approach to capital markets, wealth management, and comprehensive advisory services makes it a reliable partner for entities seeking both stability and extensive industry know-how. The company’s endurance in addressing capital, operational, and strategic challenges underscores its enduring value proposition in an increasingly complex financial environment.
B. Riley Financial (NASDAQ: RILY) has filed its Q2 2024 Form 10-Q, with financial statements matching preliminary results released on August 12, 2024. The company disclosed a preliminary cash balance of $257 million as of December 31, 2024, which includes reserves for February 2025 Senior Notes payment.
The company acknowledged delays in financial filings due to significant events in 2024 and expects to file Q3 2024 report soon to regain Nasdaq compliance. Management indicates plans to retire February 2025 Senior Notes as scheduled and reports taking actions to monetize non-core assets and deleverage the balance sheet. The company maintains strong net capital levels in its broker dealer and anticipates capitalizing on expected recovery in small- and mid-cap equity markets.
B. Riley Financial (NASDAQ: RILY) received an additional delinquency notification from Nasdaq on November 20, 2024, for non-compliance with listing rules due to delayed filing of Quarterly Reports for periods ended June 30 and September 30, 2024. While this notification doesn't immediately affect the company's Nasdaq listing, B. Riley must submit an updated compliance plan by December 5, 2024. If accepted, Nasdaq may grant up to 180 calendar days (until February 17, 2025) to regain compliance. The company attributes the delays to significant events and transactions in 2024 and expects to resume normal filing schedules in 2025.
B. Riley Financial and Oaktree Capital Management announced the launch of Great American Group as an independent business following their partnership formation. B. Riley received approximately $203 million in cash, Class B Preferred Units with an initial liquidation preference of about $183 million, and Class A Common Units representing roughly 47% of total outstanding common units. The company expects to record a $235 million gain on this investment in Q4 2024. The transaction allows B. Riley to reduce its debt while maintaining significant equity in the business.
B. Riley Securities announces its inaugural Energy Convergence Conference: Mining, Nuclear and Infrastructure scheduled for December 4th at Hotel Eventi New York. The event will bring together public companies and industry experts from mining, nuclear energy, and U.S. infrastructure sectors to present to institutional investors. The conference will feature panel discussions, analyst-moderated roundtables, and one-on-one meetings with corporate executives. The event is invitation-only and represents B. Riley's effort to connect middle market institutional investors with companies in these sectors during a period of market inflection.
B. Riley Financial (NASDAQ: RILY) has announced an agreement to sell part of its traditional (W-2) Wealth Management business to Stifel Financial Corp. (NYSE: SF) for an estimated $27-35 million in cash. The deal involves the transition of 40-50 advisors managing approximately $3.5-4.5 billion in assets to Stifel in early 2025. The transaction excludes B. Riley's 190 independent advisors and 90 tax professionals. The company cites disruption to its Wealth Management business due to competitors capitalizing on concerns about its principal investments business as a key factor in this strategic decision.
B. Riley Financial (NASDAQ: RILY) and its subsidiary bebe stores have completed a brand assets transaction generating $236 million in cash proceeds. The deal involved transferring interests in multiple brand licenses including Hurley, Justice, and Scotch & Soda to a securitization vehicle for $189 million, while bebe sold its interests in bebe and Brookstone brands for $47 million. B. Riley had originally acquired the brand portfolio (excluding bebe and Brookstone) for $222 million and received $179 million in distributions during ownership. The company plans to use proceeds to reduce senior secured debt and deleverage its balance sheet. Additionally, B. Riley expects to sell a majority stake in Great American Group in late November.
B. Riley Financial (NASDAQ: RILY) has announced cash dividends for its 6.875% Series A and 7.375% Series B Cumulative Perpetual Preferred Stock. The dividends are payable on October 31, 2024, to holders of record as of October 28, 2024. Each depositary share represents a 1/1000th fractional interest in a share of the respective Preferred Stock, with a liquidation preference of $25.00 per depositary share.
The dividend for the 6.875% Series A Preferred Stock (NASDAQ: RILYP) is $0.42968750 per depositary share, while the 7.375% Series B Preferred Stock (NASDAQ: RILYL) will pay $0.4609375 per depositary share.
B. Riley Financial (Nasdaq: RILY) has signed a definitive agreement with Oaktree Capital Management to establish a partnership in Great American Holdings, (Great American NewCo). B. Riley will contribute its Great American Group businesses to the new entity. The transaction, valued at $386 million, includes:
1. B. Riley receiving $203 million in cash
2. Class B Preferred Units with $183 million initial liquidation preference
3. Class A Common Units representing 47% ownership
Oaktree will acquire Class A Preferred Units and 53% of Class A Common Units for $203 million. The deal is expected to close in Q4 2024, subject to regulatory approvals. This partnership aims to reduce B. Riley's debt while maintaining equity upside and leveraging Oaktree's expertise to enhance growth prospects for Great American Group's services.
B. Riley Securities, a subsidiary of B. Riley Financial (Nasdaq: RILY), has announced the appointment of Brendon Philipps as Managing Director to lead their Capital Structure Advisory and Liability Management efforts. Philipps joins from Guggenheim Partners, bringing nearly 15 years of experience in complex transactions, including restructurings, debt amendments, and capital raises.
Andy Moore, CEO of B. Riley Securities, emphasized the importance of Philipps' expertise in navigating the current complex capital environment. Philipps expressed enthusiasm for expanding B. Riley's product offerings and leveraging opportunities in the current economic climate.
Philipps' background includes roles at Guggenheim Partners, KLS Diversified Asset Management, Millstein & Co., and Rothschild. He holds an MBA from Carnegie Mellon University and a BA in Economics from the University of California, Santa Cruz.
B. Riley Financial (NASDAQ: RILY) has announced strategic initiatives to enhance shareholder value by accelerating debt repayment. The company is negotiating the sale of a 53% stake in Great American Group at a $380 million enterprise value and financing its Brands portfolio for $236 million. These transactions are expected to generate approximately $410 million in gross cash proceeds. B. Riley intends to use the majority of proceeds to reduce its Nomura Senior Secured Debt to about $125 million by the end of 2024 and plans to repay all 2025 maturities. The company anticipates announcing an amended credit agreement soon and is evaluating a take-private proposal from Chairman Bryant Riley at $7.00 per share.
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