B. Riley to Sell Wealth Management Business to Stifel for Up to $35 Million, Involving 40-50 Advisors Managing $3.5B-$4.5B in Assets

Nov 2, 2024, 03:30 PM

B. Riley Financial Inc. has agreed to sell a portion of its wealth management business to Stifel Financial for an estimated $27 million to $35 million in cash. The transaction is expected to involve around 40 to 50 advisors who manage approximately $3.5 billion to $4.5 billion in assets, with the transfer anticipated to occur in early 2025. This deal has been approved by B. Riley's board. However, the company is facing scrutiny and concerns regarding its financial health, with some analysts suggesting that legal liabilities linked to the Franchise Group could lead to bankruptcy. Additionally, there are claims of misleading statements from B. Riley regarding its financial prospects, raising further doubts about the company's future.