Equity Story Group makes bold move into retail broking with Baker Young buyout

How is Equity Story Group reshaping its future with the Baker Young acquisition?

Equity Story Group Ltd, listed on the Australian Securities Exchange under the ticker EQS, has announced a strategic acquisition aimed at transforming its business model and scaling its presence in the wealth advisory sector. On April 16, 2025, the company disclosed that it has entered into a binding heads of agreement to acquire the business and assets of Baker Young Limited, a well-established Adelaide-based financial advisory firm. The total transaction consideration is A$4.2 million, marking a significant milestone in Equity Story Group’s expansion strategy.

Founded in 2014, Equity Story Group has traditionally operated as a niche investor media company, providing market commentary, trading education, and research tools to retail investors. However, the proposed acquisition of Baker Young reflects a pivot to full-service financial advice and discretionary fund management—sectors with more stable, recurring income and higher client retention.

This shift is seen as a calculated move to diversify the company’s revenue sources and reduce reliance on subscription-based content. With over 6,000 active client accounts and $700 million in funds under management (including $180 million in managed discretionary accounts), Baker Young brings scale, reputation, and deep client relationships that EQS can now leverage to build a national advisory platform.

What does the acquisition of Baker Young mean for Equity Story Group’s growth ambitions?

For Equity Story Group, the acquisition enhances its ability to serve both retail and high-net-worth clients by integrating technical trading insights with long-standing fundamental advisory services. The company plans to merge its proprietary CTM (Chart, Timing, Momentum) trading methodology with Baker Young’s research-driven approach to deliver a hybrid model of investment guidance that blends data-driven analysis with personalised financial advice.

This strategic integration not only broadens the firm’s advisory capabilities but also lays the foundation for EQS’s expansion into capital markets and institutional services. By adding Baker Young’s corporate advisory arm and Individually Managed Account platform to its portfolio, EQS gains entry into segments typically dominated by larger financial institutions.

Given the market-wide pressures on advisory firms to modernise, comply with tighter regulations, and meet digitally savvy client expectations, the acquisition enables Equity Story to position itself as a nimble, tech-enabled alternative to traditional brokerages.

How is the transaction structured, and what are the financial implications?

The purchase agreement comprises an upfront payment of A$3 million and an earn-out of A$1.2 million, contingent on the performance of Baker Young over a 10-month post-completion period. The full transaction is funded through debt, and Equity Story will also issue 10 million options at an exercise price of 5 cents per share, subject to shareholder approval under ASX Listing Rule 7.1. These options will be escrowed for six and twelve months respectively, helping align long-term incentives.

Critically, the company expects the deal to be earnings-accretive. By securing revenue-generating assets, Equity Story aims to stabilise its income profile and create a scalable model for growth through future acquisitions. The incorporation of a profit-sharing structure is designed to retain top talent from Baker Young while attracting new advisory professionals seeking performance-based incentives within a growth-oriented firm.

In addition to enhancing recurring income, the acquisition provides brand equity and operational infrastructure that EQS can use to expand into new geographies and customer segments across Australia.

What does the market think about Equity Story Group’s strategic shift?

As of April 16, 2025, Equity Story Group Ltd’s stock was trading at A$0.018—down nearly 50% from its 52-week high of A$0.036 in March 2025. The company’s market capitalisation stood at approximately A$3 million, with an average daily trading volume of around 79,000 shares. This downturn reflects cautious investor sentiment, especially in light of EQS’s financial history.

For the fiscal year ending June 2024, EQS reported a net loss of A$1.92 million, a modest improvement from its A$2.57 million loss in FY23. Despite trimming its losses, the company has yet to achieve profitability and does not offer dividends. With a current price-to-earnings ratio of zero, investors appear to be adopting a wait-and-watch approach, seeking evidence that the Baker Young acquisition will deliver the synergies and recurring revenue required to reverse the downtrend.

Market analysts suggest a Hold position for current shareholders, as the deal provides strategic promise but carries execution risk. Speculative Buy ratings may be considered for risk-tolerant investors betting on EQS successfully leveraging Baker Young’s scale and brand to pivot into long-term profitability. Those focused on capital preservation may see reason to Sell, particularly given the company’s reliance on debt funding and the competitive nature of wealth advisory in Australia.

Until the acquisition is fully integrated and begins contributing materially to the bottom line, EQS stock may continue to trade in a narrow range, making investor patience a key factor in portfolio decisions.

What are leadership and legacy stakeholders saying about the acquisition?

Shane White, who recently took over as CEO of Equity Story Group, described the transaction as a defining moment that signals the beginning of a new growth phase. He highlighted that the acquisition builds on Equity Story’s mission to improve investment outcomes for Australians by expanding its service offerings and national reach.

Executive Chairman Brendan Gow emphasised that the acquisition aligns with the company’s strategic thesis: to consolidate established financial advisory practices and empower them with scalable, tech-forward infrastructure. Gow views the deal as a first step toward further acquisitions and deeper market penetration.

Founders Alan Young and David Baker, who spent four decades building Baker Young, also endorsed the move. They affirmed that joining Equity Story will allow them to continue serving their clients while gaining access to new digital tools, capital markets capabilities, and national growth opportunities. Importantly, both have committed to remain with the company post-acquisition to ensure continuity and a seamless transition.

What comes next, and what are the risks?

The acquisition remains subject to standard closing conditions, including the execution of a formal asset sale agreement, regulatory approvals, and shareholder consent for the issuance of options. If a definitive agreement is not signed by May 31, 2025, the heads of agreement will lapse unless extended.

Key personnel retention is also critical. Alan Young and David Baker’s ongoing involvement has been contractually secured, but long-term advisor loyalty and integration of service models will be essential to maintaining client satisfaction.

With the advisory sector facing mounting compliance costs and margin pressures, EQS will need to execute flawlessly to deliver the projected financial benefits. Still, the company appears to be strategically aligned with broader industry shifts favouring digital delivery, fee transparency, and scalable platforms.

Why does this matter for Australia’s financial services landscape?

Equity Story’s acquisition of Baker Young represents a broader trend in the Australian financial advisory industry: the consolidation of legacy advisory firms by agile, tech-enabled platforms seeking to gain scale and relevance in a post-Royal Commission regulatory era. With consumer expectations shifting toward hybrid service models that blend personal advice with digital convenience, EQS is positioning itself at the crossroads of tradition and transformation.

If successful, the Baker Young acquisition could serve as a model for other mid-cap ASX-listed companies aiming to transition from content-based investor services to diversified, advice-driven financial ecosystems. For now, Equity Story’s shareholders and market watchers will be closely observing whether this bold $4.2 million bet translates into sustained revenue growth and a turnaround in market sentiment.