Oaktree Capital in Talks to Acquire Majority Stake in B. Riley Financial's Strategic Units

Wednesday, 21 August 2024, 09:32

Oaktree Capital is nearing an acquisition of a majority stake in B. Riley Financial's businesses, notably the Great American Group units. The potential deal, valued at $380 million, could be announced soon, with shares of B. Riley rising significantly. This acquisition is part of B. Riley's ongoing strategic alternatives review process.
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Oaktree Capital in Talks to Acquire Majority Stake in B. Riley Financial's Strategic Units

Oaktree Capital's Potential Acquisition

Oaktree Capital is in exclusive discussions to purchase a majority stake in two units owned by B. Riley Financial Inc., as per sources familiar with the situation. The acquisition would see Oaktree acquiring between 51% to 55% of B. Riley’s appraisal and valuation services and its retail solutions unit, formerly known as the Great American Group.

Valuation and Market Reaction

This deal values the units at approximately $380 million and has resulted in B. Riley's shares rising by as much as 14% following the news. Confident investors are watching this space closely, as it reflects the market’s optimism regarding structural changes within B. Riley.

Strategic Alternatives Review

  • B. Riley Financial has officially engaged Moelis & Co. to assist in reviewing strategic alternatives.
  • Recent updates include a preliminary proposal for B. Riley to be taken private by its co-founder, Bryant Riley.
  • Despite recent turmoil, including a suspended dividend and investigations by the SEC, B. Riley remains committed to its strategic review.

As a significant player in the financial landscape, the success of this acquisition could profoundly impact B. Riley's future and its operational strategies.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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