SOURCE: iMerge Advisors

May 23, 2007 10:13 ET

Internet Business Rating Index Reveals 18 Percent Increase

iMerge Advisors Points to Continued Growth in Internet Business Merger & Acquisition Activity Through 2008

BOSTON, MA -- (MARKET WIRE) -- May 23, 2007 -- iMerge Advisors (www.imergeadvisors.com), a mergers & acquisitions firm exclusively focused within the Internet vertical, reported an 18% increase in its Internet Business Rating Index for the first quarter ending March 31, 2007.

The number is derived from benchmarking both the firm's internal indicators such as number of closed transactions, multiples of EBITDA paid, deal structure, length of time on the market and external economic indicators such as current interest rates and Retail E-commerce sales.

"The M&A environment for the Internet business sector remains strong and will likely progress through 2008," said Michael Gravel, co-founder and Managing Director of iMerge Advisors. "The rise in interest rates, energy costs and the declines in the residential housing market have not impacted this sector to date. However, we believe the biggest challenge in maintaining the current activity levels is the long-term direction of interest rates. Any large spikes will slow the overall M&A activity level down, increase buyer ROI requirements and ultimately effect the financing models offered to sellers."

Domestic transactions accounted for the majority of the Internet business M&A activity with an increase of 47% in completed deals up from first quarter ending March 31, 2006. The aggregate value of these deals increased 22% to $88 million dollars.

In the first quarter of 2007 international activity also increased with the closing of deals in United Kingdom and the signing of major web properties from Norway and Australia.

"We continue to expand our offices around the world to fill in a gap for Internet business owners who find it difficult to obtain access to expert mergers and acquisitions advisors within this space," said Ross Whittaker, co-founder and COO of iMerge Advisors. "This expansion will enable our clients to gain international exposure to our network who seek to make cross border acquisitions while taking advantage of currency disparities."

iMerge Advisors currently has office locations in the United States, United Kingdom, Australia and Hong Kong.

About iMerge Advisors

Founded in 2001 iMerge Advisors, Inc. is North America's first mergers & acquisitions firm providing consulting and advisory services to small- to mid-market Internet businesses with revenues ranging from $1MM to $100MM. For more information, please visit www.imergeadvisors.com

Contact Information

  • For more information, contact:
    Shamsi Chu
    iMerge Advisors, Inc.
    Email Contact
    888.882.4324 x 231