SYDNEY: Equity Story Group (ASX: EQS) announced Wednesday it has signed a binding agreement to acquire Adelaide-based financial advisory firm Baker Young Limited for $4.2 million, marking a strategic push into full-service wealth management.
The deal, funded through debt, includes an upfront cash payment of $3 million and a $1.2 million earn-out tied to performance milestones over 10 months. Baker Young’s founders will also receive 10 million escrowed options in Equity Story, exercisable at 5 cents per share over three years.
Key Transaction Details:
– $700 million in funds under management (FUM) and $180 million in discretionary accounts.
– Expands Equity Story’s wealth division with access to 6,000+ client accounts and corporate advisory capabilities.
– Baker Young’s brand will operate as a division under Equity Story, with co-founders Alan Young and David Baker retaining leadership roles.
CEO Shane White called the acquisition a “new phase of growth” for Equity Story, emphasizing synergies between Baker Young’s research-driven approach and Equity Story’s proprietary trading tools. Executive Chairman Brendan Gow cited the deal as part of a broader strategy to consolidate advisory firms amid sector-wide regulatory shifts.
The transaction remains subject to due diligence, regulatory approvals, and execution of formal agreements by May 31, 2025. A company presentation is scheduled for Thursday, April 17, at 11 a.m. AEST.
The Sydney-based firm provides investor education, research, and funds management services. Baker Young, founded in 1985, specializes in portfolio management and capital raising for high-net-worth clients.