Three decades of declining interest rates making debt financing more attractive, increased access to private equity dollars, robust mergers plus acquisition activity have all contributed to a continued decline in the number of public companies both in Minnesota and nationally.
Craig Johnson, senior technical research analyst for Minneapolis-based Piper Jaffray, has maintained years of pricing data on public companies across the United States.
He's seen more than a 20 percent drop in qualifying companies since 2000.
"We used to have over 6,000 stocks in our micro group project," he said. "Active and participating right now we have 4,672."
Those "active and participating" stocks Johnson tracks have two clear basic qualifications: higher than a $25 million market cap and trade at more than $2 per share.
And Minnesota is losing public companies faster than the nation as a whole. Because of the decline, the Star Tribune has decided to recast our former Star Tribune 100 to the Star Tribune 50 list of public companies.
In 2000, the Star Tribune 100 list was culled from a universe of 202 companies, and the 100th-largest public company had to have more than $74 million in annual revenue to make the list.
On last year's Star Tribune 100, $74 million in revenue would have been good enough for No. 61 on the list.