TorQuest Partners, the Canadian mid-market private equity firm, has acquired GlassRatner Advisory & Capital Group and B Riley Farber Advisory – collectively known as GlassRatner – from B Riley Financial, in a $118m transaction, according to a report by Bloomberg.
The sale, expected to generate a pre-tax gain of approximately $66m for B Riley, marks the latest in a series of divestitures as the Los Angeles-based financial services firm seeks to strengthen its capital structure and refocus on core operations.
GlassRatner – also known as B Riley Advisory Services – provides a suite of financial advisory services, including restructuring and turnaround consulting, forensic accounting, and valuation services. The business was originally acquired by B Riley in 2018.
The deal follows a strategic reshaping of B Riley’s portfolio amid financial headwinds.
The firm has recently exited positions in its investment banking and wealth management divisions, as well as disposed of its stake in Great American Group.
B Riley shares, which peaked above $59 in mid-2023, have since plummeted to around $3 amid ongoing scrutiny over delayed financial filings and balance sheet concerns.
Nasdaq has given the firm until the end of September to submit its overdue 2024 and Q1 financial results or risk potential delisting.
Investor sentiment has further deteriorated following the collapse of Franchise Group, a major holding whose bankruptcy wiped out shareholders just over a year after B Riley committed additional capital to the company.
