B. Riley Financial Announces Acquisition of FocalPoint Securities, LLC, a Leading M&A Advisory Investment Bank

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LOS ANGELES, January 18, 2022 / PRNewswire / – B. Riley Financial, Inc. (NASDAQ: RILY) (“B. Riley” or the “Company”), a diversified provider of business advisory and financial services, today announced that it has agreed to acquire FocalPoint Securities , LLC, a leading independent investment bank headquartered in Los Angeles, for a total of up to 175 million dollars. The transaction, which will create revenue synergies for both companies, comes as FocalPoint is experiencing significant momentum 17 billion dollars in closed transactions spanning a 20-year history of success. The combination is expected to more than quadruple B. Riley’s pro forma M&A advisory business, while significantly improving its debt capital markets and financial restructuring capabilities.

Founded in 2002, FocalPoint specializes in mergers and acquisitions (M&A), private equity consulting, financial restructuring and special situation transactions. The company includes approximately 50 investment banking professionals with deep industrial specialization in high-growth sectors such as aerospace and defense (A&D), industry, business services, consumers, healthcare and technology / media / telecom (TMT). The combination of B. Riley and FocalPoint builds on the momentum and proven execution capabilities of both companies and is in line with B. Riley’s stated intent to expand M&A and fixed income advisory capabilities. This combination provides strategic and financial sponsor clients with access to both companies’ proven execution capabilities and a complete suite of end-to-end services from a single platform.

Bryant Riley, President and Co-Chief Executive Officer of B. Riley Financial, said: “FocalPoint is a world-class company known for its ability to handle complex business with speed, accuracy and quality. This combination builds on our long and consolidated experience of acquiring and integrating other complementary businesses that can provide us with additional dimensions and capabilities to expand our leadership in the small and medium market, with both companies starting around the same time, in the same area of Southern Californiaand by building meaningful niches within our industries, this deal has special significance to me. We couldn’t be more excited to welcome the FocalPoint team to B. Riley. “

“We have long admired the unique platform that the B. Riley team is building and are excited to become an integral part of it now. We have grown tremendously over the past 20 years and believe we will be able to compete even more aggressively in the market in the future.” , said Nishen Radia, co-founder of FocalPoint. Added co-founder Duane Stullich, “This transaction offers greater breadth and depth to our mergers and acquisitions, debt capital markets and financial restructuring teams, while maintaining the entrepreneurial and collegiate culture that made FocalPoint a success.”

Second Rajesh Sood, FocalPoint Managing Partner, “The combination will enable us to offer more opportunities to our employees and provide our customers with access to significantly more products and services. We are excited to take this next step and look forward to the next. chapter with B. Riley. “

Sullivan & Cromwell LLP acted as legal counsel to B. Riley Financial. Sidley Austin LLP and Sheppard, Mullin, Richter and Hampton LLP served as legal counsel for FocalPoint. Houlihan Lokey he was financial advisor to FocalPoint.

Information on FocalPoint partners
FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements, financial restructuring and special situation transactions. With offices in Los Angeles, Chicago, Dallas, New York, And Shanghai, the company serves mid-market customers throughout the United States. Securities products and services are offered through FocalPoint Securities, LLC. FINRA member, SIPC. For more information, visit www.focalpointllc.com and follow us on LinkedIn and Twitter.

About B. Riley Financial
B. Riley Financial provides tailored collaborative solutions to meet the capital raising and business advisory needs of its clients and partners. The Company operates through several branches offering a wide range of complementary end-to-end functionalities ranging from investment banking and institutional brokerage, to private asset and investment management, financial advice, corporate restructuring, operations, risk and compliance management, due diligence, forensic accounting, litigation assistance, appraisals and valuations, auctions and settlement services. For more information, visit www.brileyfin.com and follow us on LinkedIn and Twitter.

Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are forward-looking statements based on management’s current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or these assumptions prove incorrect, our business, operating results, financial condition and share price could be significantly adversely affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date of this press release. Such forward-looking statements include, but are not limited to, statements regarding the terms and conditions and expected results of the FocalPoint transaction, including anticipated income synergies and pro forma impact on our M&A advisory business. Factors that could cause actual results to differ include (without limitation) the risks associated with the unpredictable and ongoing impact of the COVID-19 pandemic, income synergies that are not fully realized or take longer than expected to be realized, the risks associated with the integration and other risks described from time to time in B. Riley Financial, Inc.’s periodic filings with the SEC, including, without limitation, the risks described in B. Riley Financial, Inc.’s annual report on the form 10-K for the completed year December 31, 2020 and in our quarterly reports on Form 10-Q for completed quarters March 31, 2021, June 30, 2021 And September 30, 2021 under the items “Risk factors” and “Discussion and analysis of the financial situation and management results by the management” (as appropriate). These factors must be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date of this press release and B. Riley Financial, Inc. assumes no obligation to update this information.

Contacts
For B. Riley Financial

Investors
Mike Frank
[email protected]
(212) 409-2424

Average
Jo Anne McCusker / Scott Cianciulli
[email protected]
(212) 739-6753

SOURCE B. Riley Financial

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