Equity Story expands national advisory footprint with acquisition of Adelaide firm Baker Young

Capital markets specialist Equity Story Group (ASX: EQS) has moved to acquire Adelaide-based financial advisory firm Baker Young.

The strategic binding heads of agreement (HOA) will give the company access to full-service retail and high-net-worth investment capabilities while significantly expanding the company’s wealth management division.

Baker Young, which has been in business for more than 40 years and currently services a client base of more than 6,000 accounts, offers Australian listed securities execution and advice, portfolio management and wealth, capital raising and corporate advisory services.

New phase of growth

Chief executive officer Shane White said the strategic acquisition signals a new phase of growth, ambition and capability for Equity Story.

“This opportunity expands our wealth advisory platform, strengthens our corporate advisory reach and delivers national scale—all while remaining deeply aligned with our mission to improve investment outcomes for Australians.”

Mr White said the Baker Young brand would become a division of Equity Story and form part of the foundation of a national expansion strategy.

Ideal strategic fit

Executive chair Brendan Gow said Baker Young was an ideal strategic fit for the company.

“This acquisition exemplifies our thesis of consolidating high-quality advisory practices under a forward-thinking brand,” he said.

“As the advisory sector faces generational change and regulatory pressures, we see a clear opportunity to partner with legacy firms ready for scalable, tech-enabled growth.”

Terms of the deal

Equity Story, which expects the $4.2 million acquisition to be earnings-accretive, will fund it entirely through debt and the issue of 10 million of its shares that it will hold in escrow for terms ranging between six and 12 months.

Of this, $3m will be an upfront payment with the balance paid via an earn-in agreement if and when certain conditions are met.

The transaction is subject to the parties executing a formal and more detailed asset sale and purchase agreement and can be terminated if they fail to execute a formal agreement by 31 May 2025.