B. Riley Co-Founder Withdraws Proposal to Take Investment Bank Private

B. Riley Financial, Inc. (Nasdaq: RILY) shareholders were left in limbo on Monday after co-founder and co-CEO Bryant Riley withdrew his proposal to take the investment bank private. The move comes just days after Riley submitted a preliminary, non-binding letter of proposal to acquire the outstanding shares of the company not currently owned by him at a proposed purchase price of $7.00 per share.



The withdrawal of the proposal has left investors uncertain about the company's future prospects and the potential impact on its stock price. B. Riley Financial's shares fell by nearly 6% in premarket trading on Monday, paring early session losses after a turbulent week that ended with Riley's unsolicited offer.

The company's Board of Directors had established a Special Committee consisting of independent directors with their own advisors to carefully evaluate the proposal and determine the appropriate course of action and process. However, the Board cautioned shareholders and others considering trading the company's securities that they had just received the proposal and had not had an opportunity to carefully review or evaluate its terms or make any decision with respect to the company's response to the proposal.



The Board also noted that there can be no assurance that any definitive offer will be received, that any definitive agreement will be executed relating to the proposal, or that this or any other transaction will be approved or consummated. The company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. The company provides end-to-end financial services across investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. B. Riley opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies.

The withdrawal of the proposal to take B. Riley Financial private raises questions about the company's strategic direction and the potential impact on its stock price and investor confidence. As the company moves forward, it will be important for management to communicate effectively with shareholders and provide clarity on the company's plans for growth and value creation.