B. Riley Financial Acquires Corporate Division of Farber Group

March 24, 2023 – Diversified financial services platform B. Riley Financial Inc. has acquired the corporate division of Farber Group, a Toronto-based restructuring and business advisory firm. Financial terms of deal were not included. “The Farber acquisition represents an exciting addition for B. Riley,” said Ian Ratner, co-CEO of B. Riley Advisory Services. “This is a world-class organization with whom we have enjoyed a long-standing relationship for over 15 years. We look forward to growing our capabilities and collective foothold across the North American market alongside our trusted partner.”

Farber provides corporate restructuring and related advisory services, M&A corporate finance, wealth management, interim management, and executive search, human capital advisory, organizational and talent development and related consulting services to corporate clients, entrepreneurs, law firms, lenders, private equity firms, regulators, and investors across Canada.

As part of the acquisition, Farber’s corporate division will become part of B. Riley Advisory Services. The acquisition adds 45 staff, including 16 experienced restructuring professionals, to B. Riley’s restructuring and turnaround management practice. The Canadian practice will operate under the name B. Riley Farber. Farber’s consumer and tax divisions are not included in this transaction and will continue to service their clients in the normal course.

“We are thrilled to become part of B. Riley,” said Gary Lifman, senior managing director at Farber. “This combination catapults our firm into a class of its own. Together, our combined resources and scale enable us to offer our clients greater expertise, experience, and industry specialization. Our established trust, aligned cultures, and shared values allow us to seamlessly collaborate to provide greater value to our stakeholders. As part of B. Riley, our focus remains dedicated to providing the same superior service our clients have known for years.”

Increases Cross-Border Opportunities

Combined, B. Riley and Farber creates a new North American financial restructuring and business advisory firm. With new and expanded capabilities, this combination mutually benefits B. Riley’s and Farber’s clients in the U.S., Mexico, and Canada.

Farber’s interim management and executive search practice, along with its human capital and organizational development advisory services, complement B. Riley’s interim management services in which the firm is appointed interim CEO, CFO, or chief restructuring officer for clients navigating a restructuring.

The company says these complementary offerings facilitate the sourcing, retention, and development of executive talent to support clients across North America, whether for growth or distressed situations. “The integration of the firms’ resources and capabilities extends B. Riley’s appraisal, valuation, litigation support and forensic services to Farber clients, and provides a foundation with which to expand corporate finance capabilities in Canada and provide Canadian clients access to U.S. capital markets,” the company said.

Related: Hunt Scanlon Media Launches M&A Advisory Service for Recruiters

Farber is also a member of IIC Partners, a global network of search firms with a strong footprint in the Americas. This global network allows Farber to collaborate on executive search and human capital advisory mandates and other cross-border opportunities.

The addition of Farber builds on prior successful investments to expand B. Riley’s financial consulting segment including its acquisition of GlassRatner in 2018, and its acquisition of an automotive restructuring firm, Alderney Advisors, in 2021.

M&A Activity for Recruiting and Talent Platforms Expected to Heat Up In 2023
Acquisitions made big news in the recruiting industry this past year, and for good reason. Outside investors caught on to the sector’s expansion potential and long growth runway ahead. Top search leaders also found ways to maximize profit (cutting back on office space helped every search firm achieve a better bottom line in 2022). That made them highly attractive to private equity firms seeking platforms they could accelerate and scale.

Arnall Golden Gregory LLP acted as legal advisor to B. Riley, and Goodmans LLP served as legal counsel to Farber.

Founded in 1979, Farber was established as an insolvency and restructuring business. Today, Farber provides services across the areas of restructuring, financial and human capital consulting, interim management and executive search, M&A corporate finance, and wealth management. With offices in Toronto, Calgary, Edmonton, and Vancouver, Farber is positioned to advise businesses across Canada. The company was founded in 1979.

B. Riley Advisory Services is a provider of specialty business advisory services that works with law firms, lenders, private equity sponsors, and companies of all types on business challenges such as planning and executing a major acquisition or divestiture, pursuing a fraud investigation or corporate litigation, or managing through a business crisis or bankruptcy. The firm offers a mix of appraisal services including asset-based lending valuations, restructuring and turnaround management, forensic accounting and litigation support, and transaction support services including due diligence and quality of earnings reviews.

Related: Will Hot M&A Recruiting Market Cool and Reset Valuations

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media

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