Integration Risk. Paragem may not convert seamlessly to profitability.

Capital Allocation and new MD. New managing director Nathan Jacobsen came with the Paragem acquisition from HUB. Will watch his performance closely. Significant risk that a poor acquisition or two could torch capital.

Limited liquidity. Suits long term holders only

A mish-mash of wealth and accounting services businesses.

Wealth Solutions provides dealer services and managed accounts to financial advisors.

Accounting Solutions provides services to accounting firms, primarily training and technical support.

Currently trading at an undemanding multiple of ~10x.

Three sources of near-term growth should result in ~50% uplift in earnings over the next two years:

1/ Paragem Integration

Paragem (including $1m in cash) was acquired from HUB at the beginning of 2021 for $4m in scrip. Paragem adds scale to the Wealth Solutions business. Increasing full representatives and Wealth Solutions revenue by ~50% (171 to 250 representatives, ~$60m to $90m revenue).

Successful integration of Paragem at current rates of profitability could add $0.8m to earnings.

2/ Remaining TaxBanter Acquisition

Easton has the option to increase its interest in TaxBanter from 60% to 100% in January 2022. At current rates of profitability this adds ~$0.5m to earnings.

3/ Organic Growth of Knowledge Shop

Knowledge Shop has been growing at 10% to 20% per year and should continue to do so as demand for online services increase and its expanded offering to financial advisors gains traction.

Two years of continued growth will add ~$0.4m of earnings.