diff --git a/lib/truncate_html/html_string.rb b/lib/truncate_html/html_string.rb
index 76d82e9..8b04e89 100644
--- a/lib/truncate_html/html_string.rb
+++ b/lib/truncate_html/html_string.rb
@@ -13,9 +13,7 @@ def html_tokens
       scan(REGEX).map do |token|
         HtmlString.new(
           token.gsub(
-            /\n/,' ' #replace newline characters with a whitespace
-          ).gsub(
-            /\s+/, ' ' #clean out extra consecutive whitespace
+            / +/, ' ' # Clean out extra consecutive whitespace
           )
         )
       end
@@ -34,7 +32,7 @@ def html_comment?
     end
 
     def matching_close_tag
-      gsub(/<(\w+)\s?.*>/, '</\1>').strip
+      gsub(/<(\w+)\s?.*>/m, '</\1>').strip
     end
 
   end
diff --git a/lib/truncate_html/html_truncator.rb b/lib/truncate_html/html_truncator.rb
index 52b707f..d01be86 100644
--- a/lib/truncate_html/html_truncator.rb
+++ b/lib/truncate_html/html_truncator.rb
@@ -38,7 +38,7 @@ def word_boundary
     def build_output
       out = @truncated_html.join
       if word_boundary
-        term_regexp = Regexp.new("^.*#{word_boundary.source}")
+        term_regexp = Regexp.new("^.*#{word_boundary.source}", Regexp::MULTILINE)
         match = out.match(term_regexp)
         if match && match[0] != out
           out = match[0] + @closing_tags.join
diff --git a/spec/truncate_html/html_truncator_spec.rb b/spec/truncate_html/html_truncator_spec.rb
index 0da14d6..aa3d039 100644
--- a/spec/truncate_html/html_truncator_spec.rb
+++ b/spec/truncate_html/html_truncator_spec.rb
@@ -101,15 +101,19 @@ def truncate(html, opts = {})
     truncate(html, :length => html.length).should == html
   end
 
-  #unusual, but just covering my ass
+  # Unusual, but just covering my ass
   it 'recognizes the multiline html properly' do
     html = <<-END_HTML
-      <div id="foo"
-            class="bar">
-This is ugly html.
+<div id="foo" class="bar">
+This
+ is
+ ugly
+ html.
 </div>
-    END_HTML
-    truncate(html, :length => 12).should == ' <div id="foo" class="bar"> This is...</div>'
+END_HTML
+    truncate(html, :length => 12).should == '<div id="foo" class="bar">
+This
+ is...</div>'
   end
 
   %w(br hr img).each do |unpaired_tag|