DSO vs Private Buyer: Which Gets You the Better Deal?
DSOs wave big numbers. Private buyers offer clean exits. But which deal actually puts more money in your pocket? We break down the real math behind both options.
DSO Offer Structure
- Typically 5-8x EBITDA headline number
- 60-80% cash at closing, rest in earnout or equity rollover
- 2-5 year employment agreement required
- Earnout tied to performance targets
Private Buyer Offer
- Typically 1.5-2.5x SDE or 65-80% of collections
- 90-100% cash at closing (SBA financed)
- Clean break within 60-90 days
- No earnout risk