B. Riley Financial Forges Strategic Partnership with Oaktree to Bolster Growth and Reduce Debt

B. Riley Financial, a leading financial services firm, has announced a strategic partnership with Oaktree Capital Management, a renowned investment management firm. The two companies have joined forces to form Great American Holdings, a new entity that will consolidate B. Riley's Appraisal and Valuation Services, Retail, Wholesale & Industrial Solutions, and Real Estate businesses. This transformative move, valued at $386 million, aims to enhance B. Riley's financial services offerings and foster growth opportunities while reducing the company's debt burden.

Unlocking Synergies and Driving Sustainable Growth

Consolidating Complementary Businesses

The partnership between B. Riley and Oaktree will see the creation of Great American Holdings, a new entity that will bring together B. Riley's Appraisal and Valuation Services, Retail, Wholesale & Industrial Solutions, and Real Estate businesses. This strategic consolidation will allow the combined entity to leverage its diverse expertise and resources to deliver enhanced financial services to its clients. By integrating these complementary business units, Great American Holdings will be well-positioned to capitalize on emerging market opportunities and drive sustainable growth.

Leveraging Oaktree's Investment Expertise

The partnership with Oaktree Capital Management, a renowned global investment management firm, will provide Great American Holdings with access to Oaktree's extensive investment expertise and resources. Oaktree's proven track record in identifying and capitalizing on growth opportunities will be instrumental in shaping the strategic direction of the new entity. This collaboration will enable Great American Holdings to explore and pursue new avenues for expansion, further strengthening its position in the financial services industry.

Reducing Debt and Retaining Equity

The $386 million transaction will allow B. Riley to significantly reduce its debt burden while retaining a substantial equity stake in the newly formed Great American Holdings. This strategic move will enhance B. Riley's financial flexibility and position the company for long-term success. By leveraging Oaktree's investment expertise and resources, Great American Holdings will be able to navigate the evolving financial landscape more effectively, ultimately benefiting B. Riley's shareholders.

Enhancing Financial Services Offerings

The partnership between B. Riley and Oaktree aims to enhance the financial services offerings of the combined entity. By integrating the complementary business units, Great American Holdings will be able to provide a more comprehensive suite of services to its clients. This includes a broader range of appraisal and valuation services, retail solutions, wholesale and industrial solutions, and real estate-related offerings. The enhanced capabilities will enable the new entity to better cater to the diverse needs of its client base, driving growth and strengthening its competitive position in the market.

Fostering Growth Opportunities

The strategic alliance between B. Riley and Oaktree is expected to unlock a wealth of growth opportunities for the newly formed Great American Holdings. By leveraging the combined expertise, resources, and market insights of the two companies, the new entity will be well-positioned to identify and capitalize on emerging trends and market shifts. This collaborative approach will enable Great American Holdings to expand its reach, diversify its service offerings, and solidify its position as a leading player in the financial services industry.

Anticipated Completion and Future Outlook

The partnership between B. Riley and Oaktree is expected to be completed by late 2024, subject to customary closing conditions and regulatory approvals. Once the transaction is finalized, the newly formed Great American Holdings will embark on a journey of growth and transformation, leveraging the combined strengths of its parent companies. Investors and industry stakeholders alike will be closely monitoring the progress of this strategic alliance, as it promises to reshape the financial services landscape and deliver long-term value for all involved.