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LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services firm, has completed the merger of its investment banking subsidiary, B. Riley Securities (BRS), with Cascadia Investments, Inc. (OTC: CDIV). According to InvestingPro data, Cascadia has maintained a consistent dividend growth track record, raising dividends for five consecutive years, while maintaining relatively low price volatility. This move allows BRS to operate with its own structure and governance, distinct from its parent company. B. Riley Financial retains approximately 89% ownership of BRS, with the remaining shares held by BRS employees and certain Cascadia investors. Despite Cascadia’s recent market performance showing a significant decline of about 95% over the past year, InvestingPro analysis indicates a GOOD overall financial health score of 2.88.
The transaction, structured as a tax-free separation, enables BRS to focus on serving small cap and middle market segments. The firm boasts a track record of over 250 capital markets transactions and advising on deals worth more than $33 billion since 2017. BRS, now quoted on the OTC Pink market under the ticker "BRLY," aims to provide stakeholders with greater transparency and an independent valuation of its services.
Andy Moore and Jimmy Baker, the leadership duo at the helm of BRS, expressed enthusiasm for the firm’s repositioning and its implications for client service. BRS will operate debt-free and continue leveraging its experienced team.
The BRS Board of Directors will include four members appointed by B. Riley Financial, with two independent directors to be named within 30 days from the transaction date. B. Riley Financial will continue to consolidate BRS financial results in its reports. For deeper insights into company valuations and financial metrics, investors can access additional analysis through InvestingPro, which offers comprehensive financial health assessments and valuation models.
Legal counsel for the transaction was provided by Sullivan & Cromwell for B. Riley Financial, and O’Melveny & Meyers for BRS.
BRS offers investment banking and capital markets services across various industry verticals, including M&A advisory and equity research. The transaction is expected to enable BRS to capitalize on a forecasted recovery in M&A and capital markets activity.
This news is based on a press release statement.
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