Equity Story Group Ltd (ASX: EQS) has announced a binding agreement to acquire Baker Young Limited, a financial advisory firm with $700 million in funds under management (FUM). The acquisition, valued at $4.2 million in cash (including a $1.2 million earn-out) plus 10 million EQS options, marks a significant expansion of Equity Story’s Wealth Management division and its reach into the retail and high-net-worth investment sector. Baker Young brings a 40-year heritage and a loyal client base of over 6,000 accounts, along with $180 million under Managed Discretionary Accounts and $4.5 million in audited FY24 revenue.
The acquisition will allow Equity Story to offer full-service retail and high-net-worth investment advice, strengthen corporate advisory capabilities, and scale nationally. Equity Story sees strong synergies between its CTM trading system and Baker Young’s research-driven approach, offering clients a unique blend of technical and fundamental insights. The $4.2 million cash consideration is fully funded through debt, with an additional 10 million options issued to the seller’s nominees, subject to shareholder approval. Half the options will be escrowed for six months, and the other half for twelve months.
The transaction is expected to be earnings-accretive, contributing to the Group’s revenue and recurring income. Baker Young’s co-founders, Alan Young and David Baker, will remain with the business to ensure a seamless transition. The Baker Young brand will become a division of Equity Story, forming the basis for a national expansion strategy. The deal is subject to due diligence, execution of formal sale documentation, and customary conditions precedent, with a deadline of May 31, 2025, for the Formal Agreement. CEO Shane White highlighted the acquisition as a new phase of growth and ambition, while Executive Chairman Brendan Gow emphasized the opportunity to consolidate high-quality advisory practices under a forward-thinking brand.
