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

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.