Mobeus V completes its first investment

By M&A Advisory
04 Jul 2022

Mobeus is very pleased to announce that it has completed the first investment from its latest UK focused
small-cap buyout fund, Mobeus V.

Mobeus has invested £8.8m to support the £13.4m MBO of Gungho Marketing, a specialist lead
generation business focused on the fast growth International RegTech and LegalTech markets.

Gungho provides outsourced sales support utilising its proprietary global database, identifying
corporate buyers of regulatory, compliance and legal solutions and then setting up qualified sales
appointments which deliver high levels of return on investment for its clients.

This investment follows Mobeus IV’s £18.1m investment into Inbox Insight in December 2021, which
enabled Mobeus to develop a deep understanding of the Account Based Marketing industry which
played a key role in being able to identify, assess and secure the Gungho transaction.

Founded in 2007, and with bases in Poundbury in Dorset and North Carolina in the USA, Gungho has
grown rapidly in recent years, with turnover increasing by over 20% in each year since 2015 as a
result of providing a unique service to its clients in these growth markets and high quality sales leads
given its deep sector knowledge, specialist staff and database. Gungho’s understanding of the buyer
groups in these industries allows its clients to markedly accelerate their own sales growth.

The deal sees incumbent CEO, Tom White, continue to lead the business with the support of his team
in the UK and US. Founder Lucy Erskine has reinvested into the business and will remain in a Non-Executive capacity alongside new Executive Chair Jonathan Harman who brings significant experience in direct marketing. The transaction was funded by Mobeus alongside vendor and management rollover with no third party debt funding. As such the business is well funded to continue its growth into the legal tech market and to continue its expansion into the USA and Asia.

The Investment was led by Chris Price and Dominic Draysey with Guy Blackburn joining the board on

Chris Price, Mobeus Partner, says, “We are delighted to have completed Mobeus V’s first investment
into Gungho marketing. Our deep understanding of the marketing services industry allowed us to quickly
identify the potential of the business and move to secure the opportunity for Mobeus. Tom, Chloe and
the team have built a strong and unique platform and we look forward to helping them accelerate their
growth trajectory over the coming years.”

Tom White, Gungho CEO, says, “the growth in the wider demand generation industry over the last few years has been exceptional. The importance of compliance and legal solutions is becoming ever more obvious as regulators continue to impose fines on companies who breach regulations. At Gungho, we can use our own data to provide RegTechs and LegalTechs with highly qualified sales leads, leading to longstanding partnerships between us and our clients as we support them with their growth plans.”

Lucy Erskine, Gungho Founder, comments, “From the first meeting, it was clear that Chris and
Dominic understood our business and were keen to protect our culture. From start to finish, the
process contradicted our initial expectations of working with a PE company – Mobeus made it
enjoyable, relatively stress free and straightforward to get the deal done. This transaction is the
culmination of years of careful succession planning. I am delighted that I will remain with the business,
supporting Tom and the team as we continue to expand.”

Mobeus was advised by HMT (Buyside Corporate Finance), Michelmores (Legals & Legal DD) Plural
Strategies (Commercial DD), HMT (Financial DD), Stratton HR (Management DD) and Grant Thornton
(Tax). The deal was introduced by M&A Advisory (vendor advisory) and the vendors advised by Outset (Legals).

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