Jonathan Killion | Source | Managing Director at Carl Marks Advisors

In the middle market, we see companies that are constrained financially to undertake the necessary improvements to financial management and IT systems. The efforts to gain efficiency in order to offset reimbursement and other pressure are proving to be risky and disruptive, and that often means the bias is to the status quo even though over time that drains the company of necessary resources and competitive insights. The trade-off is a return-on-investment horizon that doesn’t justify the incremental capital expenditures and potential disruption risk.