B. Riley Financial, Inc. (RILY): history, ownership, mission, how it works & makes money

A Brief History of B. Riley Financial, Inc. (RILY)

Founding and Early Years

B. Riley Financial, Inc. was founded in 1997 by Bryan Riley. The company began as a brokerage and investment banking firm, focusing on serving the needs of institutional and retail clients.

Growth and Expansion

In 2014, B. Riley Financial underwent significant growth when it acquired Great American Group, Inc., which added further valuation and appraisal services to its portfolio.

By 2015, B. Riley Financial reported total revenues of approximately $205 million.

Public Offering and Capital Structure

B. Riley Financial went public on the NASDAQ under the ticker symbol RILY in 2014. The initial public offering (IPO) raised around $100 million.

Recent Acquisitions

In 2020, B. Riley Financial further expanded by acquiring Friedman, Billings, Ramsey Group, Inc. This acquisition diversified their offerings into asset management and brokerage services.

Financial Performance and Metrics

For the year ended 2022, B. Riley Financial reported revenues of approximately $484 million with a net income of $42 million.

The metrics for Q2 2023 were as follows:

Strategic Initiatives

As of 2023, B. Riley Financial has initiated a strategic plan to enhance their investment banking capabilities and expand their market presence through both organic growth and acquisitions.

Market Position and Competitors

B. Riley Financial operates in a competitive environment, contending with firms like Keefe, Bruyette & Woods and Canaccord Genuity among others. The company’s diversified services provide a competitive edge in valuation and financial advisory sectors.

Stock Performance

The stock performance of RILY has seen fluctuations; as of October 2023, the stock price was approximately $20, with a market capitalization of around $500 million.

Future Outlook

B. Riley Financial has expressed intentions to focus on technology integration within their financial services to enhance operational efficiency and client engagement.

Conclusion on Financial Health

The financial health of B. Riley Financial remains robust, evidenced by consistent revenue growth and a strong balance sheet, with total liabilities reported at $350 million in 2022.

A Who Owns B. Riley Financial, Inc. (RILY)

Ownership Structure

As of the latest available data, B. Riley Financial, Inc. is a publicly traded company on the NASDAQ under the ticker symbol RILY. The ownership is divided among various institutional and individual shareholders.

Major Shareholders

Insider Ownership

Insider ownership plays a significant role in the governance of B. Riley Financial. The CEO, Christopher W. B. Riley, holds a notable stake in the company.

Institutional Ownership Trends

• Recent trends indicate increasing institutional investment in B. Riley Financial.
• As of Q3 2023, institutional ownership has reached approximately 45% of total shares.
• This marks a 5% increase compared to previous quarters.

Recent Stock Performance

As of the last trading day, B. Riley Financial, Inc. reported the following financial data:

Summary of Financial Data

For the fiscal year 2022, B. Riley Financial reported:

Recent Developments

• B. Riley Financial has expanded its acquisition strategy, targeting financial advisory firms.
• The company has increased its focus on the technology and healthcare sectors.
• Recent acquisitions have added approximately $150 Million in extra revenue streams.

B. Riley Financial, Inc. (RILY) Mission Statement

Core Values

B. Riley Financial, Inc. operates under a set of core values that guide its mission. These values include:

• Integrity
• Innovation
• Accountability
• Collaboration
• Client Focus

Strategic Objectives

The strategic objectives of B. Riley Financial, Inc. as of 2023 include:

• Maximizing shareholder value
• Driving sustainable growth
• Providing comprehensive financial services
• Enhancing client relationships
• Expanding service offerings through strategic acquisitions

Current Financial Overview

As of Q2 2023, B. Riley Financial reported the following key financial figures:

Service Offerings

B. Riley Financial provides a variety of financial services which include:

• Investment Banking
• Wealth Management
• Valuation Services
• Commercial Real Estate
• Research

Client Commitment

B. Riley Financial emphasizes a strong commitment to its clients, underlined by its mission to:

• Deliver tailored financial solutions
• Provide in-depth market analysis
• Foster long-term relationships
• Ensure transparency and reliability
• Support clients in achieving their financial goals

Growth Strategy

The company aims for growth through:

• Targeted acquisitions
• Expanding its technology capabilities
• Enhancing service delivery
• Building a diverse client base
• Investing in employee development

Recent Developments

Recent updates relevant to the company's mission include:

• Acquisition of a financial technology firm in March 2023
• Launch of a new investment platform in May 2023
• Increased focus on ESG (Environmental, Social, and Governance) initiatives as of 2023
• Partnership with leading tech companies for enhanced analytics
• Establishment of a new office in New York City

Conclusion of Mission Elements

The overarching mission statement of B. Riley Financial, Inc. is to provide innovative financial solutions while maintaining the highest standards of integrity and service.

How B. Riley Financial, Inc. (RILY) Works

Overview of B. Riley Financial, Inc.

B. Riley Financial, Inc. is a diversified financial services company based in Los Angeles, California. As of Q3 2023, the company operates through various segments, including investment banking, asset management, and financial consulting.

Business Segments

The company's operations are structured into several key segments:

• Investment Banking
• Financial Advisory Services
• Asset Management
• Principal Investments
• Retail Brokerage

Financial Performance

As of the end of Q3 2023, B. Riley Financial reported the following key financial metrics:

Investment Banking Division

The investment banking division focuses on mergers and acquisitions, capital raising, and other financial advisory services. The division completed over 70 transactions in 2022, generating approximately $150 million in revenue.

Asset Management Services

B. Riley Asset Management oversees $2.1 billion in assets as of Q3 2023. The asset management team focuses on both public and private equity investments, with a strong emphasis on growth and value strategies.

Principal Investments

The Principal Investments segment involves the company's direct investments in various businesses. As of September 2023, this segment held equity stakes in more than 30 companies across diverse industries, contributing significantly to the company's overall returns.

Market Capitalization

As of October 2023, B. Riley Financial's market capitalization was approximately $450 million, reflecting its position in the financial services sector.

Stock Performance

The stock price of B. Riley Financial (RILY) has shown fluctuations throughout 2023, with the following closing prices:

Recent Acquisitions

In 2023, B. Riley Financial acquired a prominent boutique investment advisory firm, expanding its capabilities in the advisory space. The acquisition is expected to add approximately $20 million in annual revenue.

Regulatory Compliance

B. Riley Financial adheres to regulations set forth by the SEC and FINRA, ensuring compliance with industry standards and practices.

Future Outlook

The company is focused on expanding its market presence and enhancing service offerings through strategic partnerships and acquisitions. Analysts project a revenue growth rate of 10% year-over-year for the next three years.

How B. Riley Financial, Inc. (RILY) Makes Money

Investment Banking

B. Riley Financial, Inc. generates a significant portion of its revenue through investment banking services including advisory services, capital raising, and private placements. For the fiscal year 2022, the investment banking division reported revenues of approximately $96.4 million.

Asset Management

The asset management segment contributes to B. Riley's financial performance by managing various investment funds and portfolios. In 2022, asset management generated around $16.5 million in revenue, reflecting a steady growth trajectory.

Financial Consulting

In the realm of financial consulting, B. Riley offers services that include valuation, litigation support, and financial advisory. Revenue from this segment was approximately $34.2 million in 2022, showcasing the company's expertise in complex financial scenarios.

Brokerage Services

B. Riley operates as a full-service brokerage firm, offering services that produce commission-based income. In 2022, brokerage revenues reached $66.8 million, underscoring the firm's comprehensive offerings to clients.

Real Estate Services

This area includes advisory and management services related to commercial real estate transactions. It generated revenues of about $12.3 million in 2022, contributing to the company's diverse revenue base.

Financial Performance Overview

Recent Acquisitions and Strategic Growth

B. Riley Financial has expanded its services through strategic acquisitions, which have added to its revenue streams. For instance, the acquisition of Great American Group and its integration into the financial services portfolio has significantly enhanced the firm's capabilities and revenue potential.

Market Position and Competitive Edge

The company ranks among the top independent investment banking and financial service firms in the U.S. In 2022, B. Riley was positioned in the top 10 for U.S. equity issuance, capturing market share in the competitive financial landscape.

Notable Clientele and Transactions

• Assisted clients in raising over $1 billion in capital through various equity offerings.
• Serviced more than 500 clients in the advisory sector.
• Executed over 100 transactions in merger and acquisition advisory.

Conclusion of Financial Metrics

In summary, B. Riley Financial, Inc. leverages multiple revenue streams, with notable performance metrics reflecting its diverse services and strategic growth initiatives. The intricate financial ecosystem not only serves existing clients but also paves the way for future profitability and sustainability.