B. Riley Financial is set to sell its appraisal and valuation subsidiary, Great American, to Oaktree Capital for approximately $400 million. This transaction is anticipated to be finalized by the end of the year. Insiders reveal that B. Riley is expected to receive about $203 million in cash and preferred stock worth around $183 million, along with a minority common stock interest in a new holding company.
The sale is part of B. Riley's strategy to raise cash in response to its $2 billion debt load, write-offs from poor investments, and an ongoing investigation by the U.S. Securities and Exchange Commission (SEC). The company had confirmed last month that it was in discussions to sell a majority stake in Great American, following reports of negotiations with Oaktree Capital.
