American financial services company B. Riley Financial is reportedly in discussions to divest its wealth management division to Stifel Financial for an estimated price exceeding $100m.
The talks were initiated after Stifel Financial approached B. Riley regarding the acquisition of its wealth management unit, reported Reuters, citing an undisclosed source with knowledge of the matter.
However, the outcome is not yet certain, and another buyer may still emerge as a contender for the business.
Headquartered in Los Angeles, B. Riley Financial operates through several wholly-owned subsidiaries to address the capital raising and financial advisory needs of public and private companies and high-net-worth individuals.
The publicly traded company’s wealth management and financial planning platform is designed to offer clients a portfolio of services including brokerage, investment management, insurance and tax preparation services.
The potential sale of the wealth management division follows B. Riley Financial’s recent efforts to raise funds after issuing a second-quarter loss warning. It is also facing scrutiny over involvement in the management-led buyout of Franchise Group last year.
Earlier this month, B. Riley Financial revealed that it is in exclusive talks with a global asset manager concerning the sale of a 53% stake in its Great American Group business in a deal that values the latter at around $380m.
The division comprises B. Riley Financial’s appraisal and valuation services, real estate and retail, wholesale and industrial solutions businesses. B. Riley Financial intends to generate nearly $236m of proceeds once the transaction.
Furthermore, B. Riley Financial is evaluating a potential take-private offer from its co-founder and co-CEO Bryant Riley at a proposed purchase price of $7 per share. A special committee of independent directors with its own advisers was established to review this proposal.
