Tr?id=566623520170033&ev=PageView&noscript=1

B. Riley Sells Employee Wealth Management Group to Stifel

Posted on November 22nd, 2024 at 2:11 PM
B. Riley Sells Employee Wealth Management Group to Stifel

From the desk of Jim Eccleston at Eccleston Law

B. Riley Financial Inc. has announced the sale of part of its employee wealth management division to Stifel Financial Corp. As reported by InvestmentNews, the deal, valued between $27 million and $35 million in cash, involves the transfer of 40 to 50 W2 advisors.

The transaction price is significantly lower than earlier expectations. In September, Reuters reported that Stifel was in talks to acquire B. Riley's entire retail brokerage group for $100 million. However, Stifel's interest ultimately did not extend to B. Riley's roughly 190 independent financial advisors, who operate as independent contractors.

Employee advisors, such as those included in this transaction, generally generate more revenue for broker-dealers compared to independent contractors. According to InvestmentNews, a senior industry executive noted the unexpected drop in deal value, emphasizing that B. Riley will still bear the costs of maintaining its independent contractor business.

Stifel, according to InvestmentNews, has a history of acquiring distressed wealth management and investment banking firms. B. Riley expects the 40 to 50 advisors to transition to Stifel in early 2025, bringing with them up to $4.5 billion in client assets as of September’s end.

B. Riley has faced several challenges recently, including a decline in its share price amid an SEC review of the firm's risk disclosures and scrutiny over interactions between its founder and Brian Kahn, former CEO of Franchise Group Inc.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

1791996515 Law
October 14, 2026
FINRA Study Finds Advanced Investment Knowledge Does Not Eliminate Fraud Risk

Research using the FINRA Investor Education Foundation's 2024 National Financial Capability Study found that fewer than one in five investors with non-retirement investments demonstrate advanced investment literacy.

1791918358 Law
October 13, 2026
LPL Financial Faces Investor Claims Tied to Former Broker's Outside Activities

LPL Financial faces at least nine pending investor claims involving former El Paso, Texas broker Michael C.

1791818498 Law
October 12, 2026
SEC Targets Companies in Alleged $15 Million Social Media Investment Fraud Schemes

The Securities and Exchange Commission (SEC) has charged entities behind two alleged investment fraud schemes that raised more than $15 million from investors through WhatsApp, Facebook and other online platforms.