Equity Story Group (ASX:EQS) has signed a binding heads of agreement to acquire Adelaide-based financial advisory firm Baker Young.
The acquisition, valued at $4.2 million, is expected to enhance Equity Story's wealth management division and broaden its national footprint, leveraging Baker Young's 40 years of expertise and a client base of over 6,000 accounts.
Baker Young brings a portfolio with $700 million in funds under management and $180 million in managed discretionary accounts, along with a strong track record in portfolio management, capital raising, and corporate advisory services.
The acquisition also offers synergies between Equity Story's proprietary CTM trading system and Baker Young’s research-driven approach.
The deal includes an upfront payment of $3 million and an earn-out of $1.2 million, contingent on business performance, along with the issuance of 10 million EǪS options.
The acquisition, expected to be earnings-accretive, aligns with Equity Story’s growth plan and commitment to providing accessible, high-quality wealth services across Australia.
CEO Shane White emphasised the strategic importance of the acquisition, highlighting the expanded advisory platform and national scale.
Equity Story anticipates a smooth integration of Baker Young’s team, with both founders remaining in key roles post-acquisition to ensure continuity.
The transaction is subject to customary regulatory approvals and due diligence, with a formal agreement expected by May 31.