E-Business M&A Index Reveals 23 Percent Growth in 2004

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eBizBrokers Points to Significant, Continued Growth in Internet-Based M&A Activity

eBizBrokers (http://www.ebizbrokers.com), the Nation’s only M&A specialist for Internet-based companies, today reported a 23 percent increase in e-business M&A activity from 2003 to 2004. The number is based upon the company’s Seller Rating Index, which looks at key market indicators like average selling price for an e-Business, time spent on the market, and the multiple achieved. Across the board, eBizBrokers saw a marked increase in both the quantity and dollar value of e-Business transactions. Findings included a 9 percent increase in the average multiple of pre-tax earnings that sellers realized, and a 13 percent decrease in the average amount of time businesses remained on the market.

“Internet-based companies have gone through a major identity change and are proving to be high-growth, low-risk investments when compared to their traditional counterparts,” said Michael Gravel, co-founder and CEO of eBizBrokers. “We’re seeing a steady flow of very attractive opportunities for even the most cautious investors and entrepreneurs. Deals have increased more than 25 percent from 2004 to 2003, and we expect continued growth in 2005.”

Buyers are seeking out Internet-based companies because of unique advantages over “brick and mortar” alternatives. eBizBrokers cites scalability as one reason – companies don’t need a prime real estate location to grow quickly, and there are no inherent market size restrictions. Overhead is typically low; capital assets are often limited to a few computers. There can also be quality of life advantages, such as being able to work from home and having flexible hours.

“The Seller Rating Index demonstrates how Internet-based companies are experiencing and contributing to the economic rebound,” said Ross Whittaker, co-founder and president of eBizBrokers. “We see this trend continuing as private capital returns to growth businesses, and expect that mid-market Internet-based M&A activity will continue to outpace the market average.”

As North America’s first merger and acquisition outfit dealing exclusively with small- to mid-market Internet-based companies, eBizBrokers is uniquely positioned to help business owners secure the best value for their companies. While traditional “brick and mortar” firms focus on real estate and physical assets, eBizBrokers helps sellers secure higher closing prices by accurately measuring less tangible business assets – such as intellectual property, business processes, and software code. The company’s Web site connects pre-screened, qualified businesses for sale with an international network of buyers specifically interested in online companies.

About eBizBrokers

eBizBrokers, Inc. is North America’s first merger & acquisition outfit dealing exclusively with small to mid-market Internet-based companies. Possessing unique insight into the anatomy of an e-business acquisition, eBizBrokers provides a wide range of M&A services to both sellers and buyers with revenues ranging from $500,000 to $50 million. For more information, please visit http://www.ebizbrokers.com.

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Michael Gravel
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