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

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1776963542 Law
April 23, 2026
Advisor Recruiting Surges in 2025 as Industry Movement Reaches New Highs

Advisor movement across the wealth management industry accelerated sharply in 2025, with 11,172 experienced financial advisors changing firms, according to reporting by Wealth Management citing the latest Advisor Transition Report from Diamond Consultants.

1776796402 Law
April 21, 2026
DOL Proposal on Alternative Assets in 401(k)s Faces Cautious Reception

The U.S.

1776708210 Law
April 20, 2026
FINRA Suspends Former Cape Securities CCO for Supervision Failures Tied to GWG L Bonds and Complex ETPs

The Financial Industry Regulatory Authority (FINRA) recently suspended and fined Lester Joel Hochler, the former Chief Compliance Officer of Cape Securities Inc., for failing to reasonably supervise recommendations of speculative debt securities and complex exchange-traded products to retail customers.