B. Riley Financial agreed to acquire FocalPoint Securities, an independent investment bank based in Los Angeles, for total consideration of up to $175 million. The combination is expected to more than quadruple B. Riley Financial’s pro forma M&A advisory business and enhance its debt capital markets and financial restructuring capabilities.
Founded in 2002, FocalPoint Securities specializes in M&A, private capital advisory, financial restructuring and special situation transactions. The firm includes approximately 50 investment banking professionals with industry specialization in sectors such as aerospace and defense, industrials, business services, consumer, healthcare and technology/media/telecom. The company has achieved $17 billon in closed transactions during its 20-year history.
“FocalPoint is a world class firm known for its ability to handle complex deals with speed, accuracy and quality,” Bryant Riley, chairman and co-CEO of B. Riley Financial, said. “This combination builds on our long and successful track record of acquiring and integrating other complementary businesses that can provide us with additional scale and capabilities to expand our small and middle-market leadership. With both companies having started off around the same time, in the same area of Southern California, and building meaningful niches within our industries, this deal carries special significance for me. We could not be more excited to welcome the FocalPoint team to B. Riley.”
“We’ve long admired the unique platform the B. Riley team has been building and are thrilled to now become an integral part of it. We have grown tremendously over the last 20 years and believe we will be able to compete even more aggressively in the marketplace going forward,” Nishen Radia, co-founder of FocalPoint Securities, said.
“This transaction brings more breadth and depth to our teams in M&A, debt capital markets and financial restructuring while maintaining the entrepreneurial and collegial culture that has made FocalPoint a success,” Duane Stullich, co-founder of FocalPoint Securities, said.
“The combination will allow us to provide greater opportunities for our people and provide our clients with access to meaningfully more products and services,” Rajesh Sood, managing partner of FocalPoint Securities, said. “We are thrilled to take this next step and look forward to the next chapter with B. Riley.”
Sullivan & Cromwell acted as legal counsel to B. Riley Financial on this transaction, while Sidley Austin and Sheppard, Mullin, Richter and Hampton served as legal counsel to FocalPoint Securities. Houlihan Lokey served as financial adviser to FocalPoint Securities.
