B. Riley Financial Unveils New Strategy with B. Riley Securities Carve-Out
B. Riley Financial's Strategic Carve-Out of B. Riley Securities
On March 11, 2025, B. Riley Financial, Inc. (NASDAQ: RILY) announced a pivotal move that will reshape its investment banking operations. The company has performed a carve-out transaction, merging a wholly-owned subsidiary with Cascadia Investments, Inc.【1†source】. This developmental step not only changes its governance structure but also positions B. Riley Securities (BRS) to cater more effectively to the demands of the middle market segment.【2†source】
Details of the Transaction
Through this arrangement, B. Riley Financial will maintain approximately 89% ownership of BRS, while the remaining shares will be allocated primarily to the employees of BRS via restricted stock awards and some existing shareholders from Cascadia【3†source】. The structure is designed as a tax-free separation with minimal costs, ensuring financial prudence while facilitating growth.【4†source】
BRS's stock will be traded on the OTC Pink market under the new ticker symbol
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