B. Riley Financial Inc (RILY)

History and Background

B. Riley Financial, Inc. was founded in 1973 by Bryant Riley as a small brokerage firm. Over time, it has grown through acquisitions and expansions into a diversified financial services company, offering investment banking, wealth management, and other services.

Core Business Areas

• Capital Markets: Provides investment banking, corporate finance, research, sales and trading services.
• Wealth Management: Offers financial advisory, investment management, and brokerage services to individuals and institutions.
• Auction and Liquidation: Provides valuation, auction and liquidation services to lenders, factors, private equity firms, and companies.
• Financial Consulting: Offers restructuring, forensic accounting, litigation support, appraisal and valuation services.
• Principal Investments: Includes direct investments in companies and other assets.

Leadership and Structure

Bryant Riley is the Chairman and Co-Chief Executive Officer. The company has a typical corporate structure with various departments and divisions headed by senior executives.

Key Offerings

• Investment Banking: Offers underwriting, M&A advisory, and private placements. Market share fluctuates based on deal activity; competes with bulge bracket and boutique investment banks. Competitors include Jefferies, Piper Sandler, and Stifel.
• Wealth Management: Provides personalized financial planning and investment advice. Market share is fragmented; competes with larger firms and RIAs. Competitors include Schwab, Fidelity, and Raymond James.
• Auction and Liquidation: Disposes of assets, including real estate, machinery, and equipment. Market share varies by industry; competes with other specialized auction houses. Competitors include Hilco Global and Liquidity Services Inc.

Industry Overview

The financial services industry is competitive and subject to regulatory changes and economic conditions. The auction and liquidation industry is tied to economic cycles and distress situations.

Positioning

B. Riley Financial Inc. operates as a diversified financial services firm with a focus on small and mid-cap companies. Its competitive advantages include its expertise in restructuring and its ability to provide a range of services.

Total Addressable Market (TAM)

The TAM for financial services is substantial and growing, estimated in the trillions of dollars. B. Riley is positioned to capture a portion of this through its niche expertise and diverse service offerings.

Key Competitors

• JEF
• PJC
• LAZ
• HLI

Competitive Landscape

B. Riley Financial Inc. competes with larger, more established firms in some areas and smaller, niche players in others. Its diversified business model provides some insulation from industry downturns.

National Holdings Corporation

• Year: 2021
• Acquisition Price (USD millions): 303
• Strategic Rationale: Expanded B. Riley's wealth management capabilities and added a large network of financial advisors.

Historical Growth: Growth has been driven by acquisitions and organic expansion of services.

Future Projections: Future growth depends on economic conditions, acquisition strategy, and market trends.

Recent Initiatives: Recent initiatives include expanding its wealth management platform and increasing its focus on private credit.

B. Riley Financial is a diversified financial services company with a focus on small and mid-cap markets. Its strength lies in its diversified revenue streams and expertise in restructuring, but its smaller scale and reliance on acquisitions pose challenges. The company should focus on organic growth and managing economic cycles to maintain a stable growth.

Data Sources:

• Company filings, market research reports, analyst estimates.

Disclaimers:

This analysis is based on available information and should not be considered financial advice. Market conditions and company performance can change rapidly.