A Discussion with Cantor’s Mark Baillie
By Cantor Editorial Team
Mark Baillie, Managing Director in Enterprise Software Investment Banking, is an expert in advising clients on how to scale their businesses, attract investment, or prepare for a sale or acquisition. Here are some of his recommendations for technology executives looking to grow their businesses.
Q: What topics did you advise clients on 25 years ago that remain relevant today?
Baillie: As an Advisor, I find it fascinating that many companies still struggle to manage and automate the same workflows that have existed for the last 25 years. Whether it’s engaging with customers, managing an HR department, or optimizing a supply chain, these business challenges remain just as relevant now as they were decades ago.
Today, Enterprise Software entrepreneurs and executives can concentrate on specific areas of their business while outsourcing other key functions. Whether it’s leveraging cloud-based infrastructure or AI-based agents for customer service, they can rely on third-party solutions. What once required significant internal resources can now be handled more efficiently, allowing teams to stay focused on what truly drives growth.
Q: Why do you think the pendulum constantly swings back and forth between best-of-breed and monolithic suites within IT spending?
Baillie: The distinction between best-of-breed versus monolithic players extends beyond enterprise IT spending and purchasing – it also shapes the M&A landscape, where my team serves as strategic advisors, helping corporate clients navigate various market cycles.
Purchasing decisions often favor large, monolithic suites offered by major technology vendors such as Salesforce or Microsoft . During certain market cycles, buyers view these established vendors as stable, lower-risk investments and platforms for scalable growth.
However, the venture capital industry often gravitates towards vendors that focus on delivering differentiated, best-of-breed technology. In these instances, to stay ahead of the competition, venture-backed companies are willing to take on more risk to address challenges in new and innovative ways. This dynamic has ramifications for M&A activity.
When buyers of large-suite technology start losing ground to competitors using best-of-breed solutions, it often forces them to act. This shift sparks urgency to either accelerate research and development or initiate M&A conversations.
This is where my team and I come in.
Q: How essential is sector expertise for a growth-stage tech company looking to strengthen its capital-raising strategy and maximize liquidity opportunities?
Baillie: When looking to raise capital or explore a liquidity event, it is critical to have an advisor with a deep understanding of the clients’ business, its market, and value drivers. Cantor’s Technology Banking team brings a wealth of expertise and relationships, enabling us to relate to clients, tell their stories in a compelling manner, and take them to market with a more expansive focus beyond revenue growth.
Our role is to help clients craft and communicate their story in a way that ultimately resonates with investors and strategic partners. As advisors, we work closely with C-suite executives to shape a compelling business narrative by leveraging our understanding of market dynamics, prospective buyers, and how their operational performance stacks up against potential acquisition targets.
Q. How do founder-backed startups without institutional capital differ from other companies you advise?
Baillie: Founder-backed companies offer unique opportunities for advisors, as their leadership teams are often highly independent, having successfully bootstrapped and scaled without the support of institutional capital. Our goal is never to disrupt the success they’ve built on their own, but to complement it. In these situations, advisors play a distinct role—serving as educators and strategic partners, helping founders navigate the landscape of strategic buyers, often in markets where they’ve had little prior exposure or engagement.
Q: What valuable factors should clients consider early in the transaction process?
Baillie: Every process is unique – you can’t control the market. A major factor for success is maintaining consistency and credibility throughout the process.
Entrepreneurs and CEOs of emerging growth companies love to reach for the stars. Of course, when running a business on a small scale, aiming high should be the main ambition. However, when pursuing outcomes like a liquidity event or capital raise, leaders need to develop relationships with potential partners who recognize a track record of setting and exceeding goals, rather than overpromising and underdelivering.
Another effective strategy involves implementing a targeted “drip campaign” that steadily builds awareness and positions the company over time—allowing clear, consistent market messaging to shape perception and reinforce its reputation.
Equally important, the people diligence process doesn’t end until the check clears in an M&A transaction. Strategic partners closely observe how customer relationships are managed throughout, as they provide critical insight into leadership, culture, and long-term value.