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B. Riley Financial

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B. Riley Financial, Inc.
Company typePublic
IndustryFinancial services
Founded1997; 27 years ago (1997)
Founders
  • Bryant Riley
  • Tom Kelleher
HeadquartersWestwood Gateway,
Los Angeles, California
,
U.S.
Key people
  • Bryant Riley (Co-CEO)
  • Tom Kelleher (Co-CEO)
Products
RevenueDecrease US$1.08 billion (FY 2022)
Decrease US$69.45 million (FY 2022)
Decrease US$-156.59 million (FY 2022)
Total assetsIncrease US$6.11 billion (FY 2022)
Total equityDecrease US$505.89 million (FY 2022)
Number of employees
2,210 (FY 2022)
Subsidiaries
Websitebrileyfin.com
Footnotes / references
[1]

B. Riley Financial (referred to as B. Riley) is an American financial services company headquartered in Los Angeles, California. The company is known for its investment banking services regarding small cap companies as well as retail liquidation services.[2][3] It has also been acquiring multiple organizations and companies in recent years.

Background

In 1997, Bryant Riley founded B. Riley & Co. as a stock-picking firm serving institutional investors by providing research on small companies. The firm was fined $5,000 that year by the U.S. Securities and Exchange Commission for lax record-keeping.[2][4]

Initially Riley did not want the firm being involved in investment banking due to conflict of interest issues. However in July 2003, the firm acquired Friend & Co., a boutique investment bank where Riley once worked.[2][5]

In 2012, B. Riley acquired Caris & Co., a stock research firm to increase its sales and trading business in the brokerage industry during a slowdown in the industry.[4][6]

In June 2014, B. Riley & Co. merged with appraisal and liquidation service provider, Great American Group to form B. Riley Financial, a company list on the OTC Bulletin Board under the ticker "RILY".[3][6][7]

In July 2015, B. Riley was approved to be uplisted to the Nasdaq exchange.[8][9]

In February 2017, B. Riley investment banking company, FBR & Co. in a $160 million deal to further scale its existing business.[10][7]

In May 2017, B. Riley acquired brokerage company, Wunderlich Securities for $67 million to expand its wealth management business.[7][11][12][13]

In August 2018, B. Riley acquired GlassRatner Advisory & Capital Group, a restructuring advisory firm to expand its advisory presence.[7][11]

In November 2018, B. Riley acquired 49% stake of broker-dealer National Holdings Corp from Fortress Biotech for $22.9 million. In January 2021, B. Riley acquired the rest of National Holdings Corp. In July 2022, National Holdings Corp's largest subsidiary, National Securities closed down after 75 years with its business being integrated into B. Riley. This came after National Securities was penalized by Financial Industry Regulatory Authority (FINRA). [14][15]

In April 2020, it was reported that B. Riley was benefitting from the retail apocalypse especially in 2020 due to the COVID-19 pandemic. As many brick-and-mortar retail stores closed, this gave B. Riley a lot of opportunities to provide liquation services.[3]

In June 2020, B. Riley acquired Alderney Advisors, a restructuring firm that specializes in the automotive industry. [16]

On April 12, 2021, B. Riley became a constituent member of the S&P 600 index. [17]

In August 2021, B. Riley acquired investment firm 272 Capital.[18]

In January 2022, B. Riley acquired middle market M&A advisor FocalPoint for $175 million. [19]

Portfolio companies

In May 2016, B. Riley acquired United Online for $170 Million.[20]

In November 2017, B. Riley outbid Carnegie Technologies to acquire MagicJack for $143 million.[21]

In November 2019, B. Riley launched a fashion brand portfolio by investing $116.5 million to acquire majority ownership of six fashion brands. These included Catherine Malandrino, Joan Vass, Limited Too and Nanette Lepore. [22]

In May 2023, B. Riley acquired an equity interest in Scotch & Soda.[23]

Gary Wunderlich

In January 2015, Wunderlich Securities acquired New York brokerage firm Dominick & Dickerman in a all-stock acquisition deal worth $8.3 million. Dominick and its former Chairman, Michael Campbell sued Wunderlich Securities and its former owner, Gary Wunderlich alleging fraud and misrepresentation by Wunderlich Securities regarding its financial condition when purchasing the firm. In April 2020, FINRA sided with Dominick and Campbell resulting in Wunderlich Securities being liable to pay nearly $11 million B. Riley had to pay the full amount to settle the dispute.[13]

In June 2020, Wunderlich sued B. Riley to confirm his indemnification in the matter and reimbursement for his legal fees in the arbitration.[13] In June 2023, B. Riley rejected this claim.[24]

In January 2022, B. Riley sued Wunderlich, alleging he unlawfully skirted his liability in April 2020. Wunderlich's lawyer stated B. Riley had agreed to indemnify his client as part of the 2017 purchase.[13]

References

  1. ^ "2023 10-K report". app.quotemedia.com.
  2. ^ a b c "Small Caps Boost B. Riley's Growth". Los Angeles Business Journal. 2005-03-06. Retrieved 2023-07-27.
  3. ^ a b c Darmiento, Laurence (2020-04-06). "Retail thought it was facing the apocalypse. Then came the coronavirus". Los Angeles Times. Retrieved 2023-07-27.
  4. ^ a b "B. Riley Acquires Caris to Add Research as Other Brokers Close". Bloomberg.com. 2012-12-17. Retrieved 2023-07-27.
  5. ^ Reckard, E. Scott (2003-07-31). "Brokerage B. Riley to Acquire Boutique Bank". Los Angeles Times. Retrieved 2023-07-27.
  6. ^ a b Russel, Joel (2014-05-20). "Great American to Merge With Investment Bank". San Fernando Valley Business Journal. Retrieved 2023-07-27.
  7. ^ a b c d Rizzo, Lillian. "B. Riley Acquires Restructuring Adviser GlassRatner". WSJ. Retrieved 2023-07-27.
  8. ^ "B. Riley Financial Approved for Listing on the Nasdaq Capital Market". www.prnewswire.com. July 14, 2015. Retrieved 2023-07-27.
  9. ^ McCann, Brian (2016-10-20). "B Riley Financial: A Unique Collection Of Assets (NASDAQ:RILY) | Seeking Alpha". seekingalpha.com. Retrieved 2023-07-27.
  10. ^ Jamerson, Joshua (2017-02-21). "B. Riley Financial to Buy FBR, Beefing Up Brokerage Business". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-07-27.
  11. ^ a b Langford, James (2017-05-18). "B. riley expands in ipo market with $160 million fbr takeover". TheStreet. Retrieved 2023-07-27.
  12. ^ "Wunderlich Securities Acquired by LA Firm in $67M Deal". Memphis Daily News. Retrieved 2023-07-27.
  13. ^ a b c d Martin, Jake (January 6, 2022). "B. Riley Seeks to Hold Wunderlich Founder Liable in $11M Settlement". AdvisorHub.
  14. ^ Kelly, Bruce (2018-11-19). "Fortress Biotech selling its majority stake in National Holdings". InvestmentNews. Retrieved 2023-07-27.
  15. ^ Kelly, Bruce (2022-07-29). "National Securities shuts down after 75 years, reps rolled into B. Riley". InvestmentNews. Retrieved 2023-07-27.
  16. ^ Turner, Grace (2020-06-24). "California's B. Riley Financial Acquires Southfield's Alderney Advisors". DBusiness Magazine. Retrieved 2023-07-27.
  17. ^ Berkowitz, Bram (2021-04-13). "Why Shares of B. Riley Financial Are Surging Today". The Motley Fool. Retrieved 2023-07-27.
  18. ^ Innovates, Dallas; Seeley, David (2021-08-06). "Dallas Founder Wes Cummins Sells 272 Capital to B. Riley Financial, Secures Energy Source for His Crypto Hosting Business". Dallas Innovates. Retrieved 2023-07-27.
  19. ^ Hall, Gina (2022-01-24). "B. Riley Acquires FocalPoint Securities for $175 Million". Los Angeles Business Journal. Retrieved 2023-07-27.
  20. ^ Beckerman, Josh (2016-05-05). "United Online, Owner of NetZero, Agrees to $170 Million Sale". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-07-27.
  21. ^ Orol, Ronald (2017-11-09). "B. Riley agrees to buy free-call provider MagicJack in blow to activist Carnegie". TheStreet. Retrieved 2023-07-27.
  22. ^ "Financial firm B. Riley launches fashion brand portfolio". FashionUnited. 2019-11-01. Retrieved 2023-07-27.
  23. ^ "Scotch & Soda's U.S. operations acquired with eye to expansion". Chain Store Age. Retrieved 2023-07-27.
  24. ^ "B. Riley Rejects Wunderlich Indemnification Claim In Chancery - Law360". www.law360.com. Retrieved 2023-07-27.
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