FOR IMMEDIATE RELEASE

Internet Business Owners Racing to Sell Companies Ahead of Tax Increases, Reports iMerge Advisors

SEATTLE, Oct. 26, 2010 — As widespread tax increases loom on the horizon, business owners who previously were toying with the idea of selling are now getting serious about the prospect. Business brokers and merger & acquisition (M&A) advisors are counseling clients to put their businesses on the market ahead of the 2011 tax hikes, and growing numbers of business owners are taking the advice, reports iMerge Advisors Inc. (http://www.imergeadvisors.com), a leading M&A advisor to Internet and technology firms.

“We are experiencing a spike within our client base of Internet and technology business owners who wish to exit before year-end,” stated Michael Gravel, managing director at iMerge Advisors. “We are attributing this spike to the coming tax increases.”

That is a valid concern: Individuals earning more than $200,000 and households earning more than $250,000 will see increased capital gains taxes, income taxes and health care reform taxes in 2011. Coupled with a reduction in exemptions, the coming tax increases spell trouble for business owners – and many want to sell before business values feel the negative impact.

Although many businesses have seen profits take a beating in the last three years, higher taxes spell lower proceeds from the sale of any business. Buyers will necessarily adjust their calculations to account for the tax increases. To offset the reduced valuations, businesses will have to achieve higher growth than may have previously been planned. And while most business owners expect to see the profit and revenue pendulum swing the other way before long, the reality is that growth has all but stalled in many industries.

Put together, it all adds up to a rush to sell before the 2011 tax year. As a result, prospective business buyers have more opportunities than ever. Business owners across all industries are selling right now, but the number of businesses for sale in the Internet and technology sectors in particular is growing quickly in the final quarter of 2010.

“Just this week we have had nine new listings,” stated Dan Megan, iMerge director and partner. “That is nearly 100% increase over this time last year. Business owners know if they’ve been considering selling, now is the time to take action.”

About iMerge Advisors Inc.

iMerge Advisors is North America’s first merger & acquisition (M&A) advisory firm dealing exclusively with small to mid-market Internet and technology companies. Possessing unique insight and experience into the anatomy of an internet or technology business transaction within this sector, iMerge Advisors provides a wide range of M&A advisor services to both sellers and buyers with revenues ranging up to $50 million. Learn more at http://www.imergeadvisors.com.

Contact:

Michael Gravel

iMerge Advisors Inc.

888-882-4324 x203

[email protected]

# # #