EP 135: Small Town, Big Opportunity: How to Exit in Overlooked Rural Markets

Dec 3, 2025

38:14

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Episode notes

The majority of deal conversations focus on big cities and private equity groups, but small towns have businesses too. Many of these companies are facing transition challenges because the buyers and advisors they need aren't there.

This is what Dane Chapman and Joe Rust of SPARK Capital are working to solve. They are building a model designed to keep legacy businesses in their communities by collaborating with local partners and committed operators. Their work brings needed attention to the succession challenges rural business owners face.

Dane and Joe discuss rural valuation gaps, personal goodwill risk, and how owners can prepare before value slips. If you are an owner in a small community or someone who advises one, this episode offers a clear look at how rural businesses can transition successfully.

In this episode, you will:

Learn how rural businesses can stay locally owned instead of closing or relocating
Understand why rural buyers take a different view of growth and risk compared to urban buyers
See how sellers can make their businesses more attractive to mission-driven buyers

Highlights:

(00:00) Meet Dane Chapman and Joe Rust

(02:28) The origin story of SPARK Capital

(06:11) Why rural owners struggle to sell their companies

(11:04) The role of local advisors, operators, and community partners

(17:02) How SPARK Capital approaches valuation and risk

(28:13) How owners can prepare for succession

(33:54) Community-based capital may shape the future of rural business

(35:53) Mindset shifts for a more saleable business

Resources:

For past guests, please visit https://www.defendersofbusinessvalue.com/

Follow Dane: