LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY) has engaged Moelis (NYSE:MC) & Company LLC as a financial advisor to explore strategic alternatives for its Appraisal and Valuation Services and Retail, Wholesale & Industrial Solutions businesses, with potential options including a sale. The company, which acquired the units under the Great American Group brand in 2014, has experienced significant growth in these segments.
Great American Group's appraisal and retail liquidation operations reported a 35% increase in revenue to $153 million and a 69% rise in operating income to $35 million for fiscal year 2023. Despite these gains, B. Riley believes the market is undervaluing these businesses and sees a potential sale as an opportunity to deliver greater value to shareholders.
Bryant Riley, Chairman and Co-CEO of B. Riley Financial, expressed confidence in the strong performance and growth potential of the appraisal unit. He highlighted the business's steady EBITDA and the interest from strategic and financial buyers in specialized financial services with robust free cash flow.
The company has not set a definitive timeline for the review process and has stated it will not provide further commentary until it deems further disclosure necessary or advisable. The outcome of this strategic review is uncertain, and there is no assurance that it will result in any specific transaction.
If a sale occurs, the proceeds may be utilized for various purposes, including reducing B. Riley Financial's debt, repurchasing shares and bonds, and investing in B. Riley Securities.
Michael Marchlik and Scott Carpenter, executives within the Great American Group divisions, emphasized the industry-leading services provided by their teams and their commitment to client service and expansion into new verticals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.