How Equity Story’s $4.2M Baker Young Deal Transforms Its Wealth Management Ambitions
Equity Story Group has secured a transformative acquisition of Baker Young Limited, marking its entry into full-service wealth management and a major boost to its national footprint and recurring revenue.
- Acquisition of Baker Young for $4.2 million including cash, earn-out, and options
- Baker Young manages over $700 million in funds with $4.5 million FY24 revenue
- Founders Alan Young and David Baker remain in key roles post-acquisition
- Deal funded by $3 million debt facility and supported by recent strategic investments
- Transaction expected to increase Equity Story’s revenue by over 400% and add recurring income
A Strategic Leap into Wealth Management
Equity Story Group Ltd (ASX, EQS) has taken a decisive step to broaden its financial services portfolio with the acquisition of Baker Young Limited, a well-established wealth advisory firm based in Adelaide. The $4.2 million deal, finalized in July 2025, not only brings Baker Young’s $700 million-plus funds under management under the EQS umbrella but also officially launches Equity Story’s integrated Wealth Management division.
This move signals a clear ambition by Equity Story to evolve from its roots in investor education and trading insights into a diversified financial services group. By integrating Baker Young’s advisory expertise with its own proprietary research and digital platforms, EQS aims to offer a more comprehensive suite of services to Australian investors.
Preserving Legacy While Driving Growth
One of the notable aspects of this acquisition is the retention of Baker Young’s brand and leadership. Co-founders Alan Young and David Baker will continue in key roles, ensuring continuity for the firm’s loyal client base of over 6,000 accounts. Kristian Young, a long-serving executive at Baker Young, will head the new division, providing experienced stewardship during the integration phase.
Equity Story’s CEO Shane White emphasized the cultural and strategic alignment between the two companies, highlighting the blend of fundamental research and technical trading insights as a unique client proposition. The acquisition also introduces an industry-leading profit-sharing model for Baker Young’s advisors and staff, designed to attract and retain talent as the division expands nationally.
Financial Impact and Funding Structure
The acquisition is expected to be immediately earnings accretive, boosting Equity Story’s group revenue by over 400% based on FY24 figures. The $4.2 million purchase price includes $3 million upfront cash funded through a secured debt facility from Axiis Capital Pty Ltd, a $1.2 million performance-based earn-out, and 10 million escrowed EQS options to Baker Young nominees.
These financial arrangements reflect a balanced approach to risk and reward, aligning incentives for Baker Young’s management with Equity Story’s growth objectives. The deal follows a $500,000 strategic investment from Capital Haus Pty Ltd earlier in 2025, which brought industry veteran Brendan Gow onto the EQS board as Executive Chairman, further strengthening governance and strategic oversight.
Looking Ahead, National Expansion and Client Benefits
With offices currently in South Australia, New South Wales, and Queensland, Equity Story plans to expand Baker Young’s footprint across Australia. Existing clients can expect continuity of service enhanced by access to Equity Story’s proprietary market insights, digital learning tools, and broader investment opportunities.
This acquisition positions Equity Story as a more formidable player in the Australian wealth management landscape, combining legacy expertise with innovative technology and a diversified revenue base. The integration will be closely watched by investors eager to see how effectively the combined entity can scale and deliver on its growth promises.
Bottom Line?
Equity Story’s acquisition of Baker Young sets the stage for a transformative growth phase, but execution risks and integration challenges remain key watchpoints.
Questions in the middle?
- What specific performance targets must Baker Young meet to trigger the $1.2 million earn-out?
- How will Equity Story manage the integration of Baker Young’s advisory culture with its own technology-driven approach?
- What are the potential impacts on EQS’s balance sheet and debt levels following this acquisition?
