B. Riley Financial sells advisory services unit to TorQuest for $117.8m

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ:RILY), whose stock has declined over 82% in the past year and currently trades near $3, has sold its advisory services business, GlassRatner, to funds managed by TorQuest Partners for $117.8 million, according to a press release statement issued Friday.

The company expects to record a gain of approximately $66 million from the sale in its second-quarter financial results. This transaction could provide welcome relief for B. Riley, which according to InvestingPro data has been facing profitability challenges with negative gross margins in recent quarters. B. Riley acquired GlassRatner in August 2018.

Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, said the divestiture will provide additional capital to support growth initiatives and strengthen the company’s capital structure. The company, which maintains a strong liquidity position with a current ratio of 4.17, plans to focus on its middle-market investment bank and B. Riley Wealth Management business. For deeper insights into B. Riley’s financial health and future prospects, InvestingPro subscribers have access to over 30 additional financial metrics and expert analysis.

GlassRatner, a provider of bankruptcy and restructuring services, forensic accounting, and litigation support, delivered record results in 2024 and continues to perform well across its core expertise areas, according to the company statement.

Ian Ratner will continue as Chief Executive Officer of GlassRatner. The acquisition represents the third platform investment for TorQuest Partners Fund VI, a C$2.3 billion fund.

GlassRatner employs approximately 200 team members across the United States, Canada, and Mexico. The company provides specialty professional and advisory services including transaction support, retained executive searches, and compliance consulting.

B. Riley Financial is a diversified financial services company that provides investment banking, institutional brokerage, private wealth management, and corporate restructuring services.

In other recent news, B. Riley Financial has been granted an extension by Nasdaq to meet filing requirements after delays in submitting its 2024 Annual Report and first-quarter report for 2025. The company has until September 29, 2025, to file these overdue reports and regain compliance with Nasdaq’s listing rules. Additionally, B. Riley Financial has announced a private bond exchange agreement that will reduce its debt by approximately $46 million. This involves exchanging $139 million in outstanding Senior Notes for $93 million in new notes, significantly decreasing its near-term debt obligations.

In leadership changes, Scott Yessner has been appointed as the new Chief Financial Officer, effective June 3, 2025, succeeding Phillip Ahn. Yessner brings a wealth of experience, having previously served as CFO for both public and private companies. Furthermore, B. Riley Financial received a Nasdaq delinquency notice for a delayed quarterly report, which requires a compliance plan to be submitted. The company’s proactive steps in debt management and leadership transitions reflect its ongoing efforts to strengthen its financial position and maintain compliance with regulatory requirements.

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