As part of our Vantage Impact Firms in Focus series, we discuss B. Riley Financial and who they are looking for in a “right-fit” advisor.
We explain how B. Riley differentiates themselves in the financial services industry and what they can offer financial advisors who transition to their firm.
B. Riley Financial is a financial services provider which was founded in 1997 and went public in 2014. The completed acquisition of National Holdings Corporation in early 2021 greatly expanded their national reach and presence, adding nearly 700 registered representatives and approximately $20 billion to the B. Riley Platform. The merger also broadened B. Riley’s scope of capabilities, products offered, and solutions.
B. Riley’s 2,000 professionals and 900 registered representatives now manage about $32B in client assets across 140,000 client accounts, with over 200 offices located all over the country.
B. Riley Financial has ~$660.3 MM Market Capitalization and ~$777.77 MM Cash/Securities with about 24.3% inside ownership.
Advisors can affiliate with B. Riley Financial in either a W2 or 1099 capacity. Currently B. Riley has an estimated 200 W2 advisors and 600 1099 advisors nationally.
B. Riley Financial offers a diverse array of financial services and business capabilities.
B. Riley’s open organizational architecture gives advisors opportunities to network with executive leadership. Advisors have access to the decision-makers - to share ideas and feedback, but also to build relationships. This intentional culture of transparency allows advisors to scale and advance in their career much more quickly than in other firms.
Assets acquired from liquidity events and cyclical business are mostly kept in house - giving advisors opportunities that are usually not possible in other firms unless they are part of a multi-billion dollar team.
B. Riley hires advisors through multiple platforms, as both (W2) advisors and independent contractors, called representatives (1099).
W2 financial advisors at B. Riley are offered a competitive payout percentage, particularly for advisors with 400k-800k TTM.
Representatives, or advisors hired through the 1099 platform, earn up to a 90% net payout rate.
Learn more about B. Riley's payout scale and how payout breakpoints are established by scheduling a consultation with us.
B. Riley is First Clearing’s largest client, giving advisors access to back office support and resources like it’s a large wirehouse. B. Riley advisors also have access to SPACs, IPOs, and private placements, all at their fingertips.
While the proprietary tools and resources resemble a large wirehouse firm, there is no “middle man” bureaucracy to slow things down. You don't have to call an 800 number. You know the contacts who will help you get things done.
B. Riley Financial is actively seeking advisors to embrace succession planning opportunities all over the country. They are looking to find the right match between prospective advisors with current B. Riley advisors.
For advisors thinking about transitioning their book of business to a future successor, B. Riley offers services facilitating that process including written materials and transition agreements.
Even prior to the pandemic, B. Riley Financial offered advisors a hybrid approach to their day to day work schedules. It’s all about making your business model work, not requiring you to sit in an office all day. B. Riley advisors typically follow a hybrid approach: working in the office 2-4 days and conducting business elsewhere for the other parts of the week.
B. Riley also has the flexibility for advisors to work with international clients and will treat each situation on a case by case basis, looking at the whole picture as part of the evaluation process.
B. Riley Financial wants advisors with an entrepreneurial spirit who are looking to build their books of business and advance. This firm is for advisors who believe in the benefits of networking, building relationships, and leveraging opportunities to grow their business.
With the recent acquisition of National Holdings, B. Riley is especially interested in advisors who want to build partnerships with CPA’s. There are multiple referral opportunities now (Summer 2021) to explore in certain locations.
B. Riley Financial differentiates itself with a commitment to organizational transparency and providing advisors opportunities to advance. The boutique climate with access to leadership wakes up the echoes of what it was like to be an advisor decades ago. It is not at all common in today’s industry.
In addition, B. Riley offers superior payout rates to many of the traditional wirehouse firms, and many advisors could benefit from this.
While B. Riley is not for everyone, entrepreneurial “go-getters” will thrive in their culture and should look into what a transition may look like.
If you want to learn more about B. Riley Financial or start exploring other options, reach out to us and schedule a consultation. We can dig into the details and take you through the process.