Limited operational scale focused on the middle-market client base. Modest competitive position within the fragmented and competitive enterprise content management (ECM) industry. Good revenue visibility because of its high recurring revenue base and high customer renewal rates. High risk tolerance as demonstrated by its high debt-to-EBITDA ratio of 7.1x as of Sept. 30, 2015, pro forma for the LawLogix acquisition. Good free operating cash flow (FOCF) with FOCF-to-debt of 8% as of Sept. 30, 2015. The negative outlook on Hyland Software Inc. reflects the company's high leverage tolerance at 7x and above. We could lower the rating if the company engages in debt-financed acquisitions or dividend payments leading to leverage sustained above the 7x area. We could revise the outlook
