Public Vs Privately-Held Companies: The Shifting Landscape
Over the last 25 years, the number of privately-held companies has grown and the number of public companies has dropped. What’s been driving this shift?
In this graphic from Citizens Bank, Visual Capitalist’s Jenna Ross explores the rise of private equity (PE) and what this could mean for mid-sized companies.
The Rise of Privately-Held Companies
Back in 2000, public companies were much more common. However, by the end of 2023, the majority of companies were funded by private equity firms.
| Year | Public | PE-backed |
|---|---|---|
| 2000 | 6,917 | 2,042 |
| 2001 | 6,177 | 2,256 |
| 2002 | 5,685 | 2,524 |
| 2003 | 5,295 | 2,932 |
| 2004 | 5,226 | 3,385 |
| 2005 | 5,145 | 3,909 |
| 2006 | 5,133 | 4,573 |
| 2007 | 5,109 | 5,298 |
| 2008 | 4,666 | 5,880 |
| 2009 | 4,401 | 6,097 |
| 2010 | 4,279 | 6,421 |
| 2011 | 4,171 | 6,726 |
| 2012 | 4,102 | 7,121 |
| 2013 | 4,180 | 7,402 |
| 2014 | 4,369 | 7,721 |
| 2015 | 4,381 | 7,986 |
| 2016 | 4,331 | 8,268 |
| 2017 | 4,336 | 8,709 |
| 2018 | 4,397 | 9,135 |
| 2019 | 4,563 | 9,562 |
| 2020 | 5,153 | 10,049 |
| 2021 | 4,805 | 10,711 |
| 2022 | 4,763 | 11,143 |
| 2023 | 4,572 | 11,409 |
| 2024* | - | 11,567 |
* As of June 30, 2024. Source: Pitchbook. Private-equity-backed companies exclude venture capital. Public companies are domestic U.S. firms listed on the NYSE and Nasdaq.
The growth of privately-held companies funded by PE has been driven by a number of factors:
-
There are fewer regulatory requirements
-
Companies are able to keep their financials private
-
It is typically easier to access capital
-
Investors are looking for higher returns
At the same time, the number of public companies has been declining. However, it’s important to keep in mind that this trend is significantly influenced by mergers and acquisitions. Research from Dartmouth demonstrates that when accounting for these mergers, the decline in U.S. public companies is much less pronounced. This suggests that many public companies are growing through acquisitions, which can often lead to synergies.
On top of this, the market value of public companies still dwarves that of privately-held companies. At the end of 2023, the net asset value of private equity funds was just 4.6% of the total value of U.S. public companies. This is largely due to the differences in company size, with the biggest public companies worth trillions of dollars.
Takeaways for Mid-Sized Companies
The decline in public companies is not as dramatic as it may seem at first glance, and these companies still dominate in terms of market value.
However, PE has grown as an attractive option for mid-sized companies that may be looking for easier access to capital or that want to avoid the requirements of being publicly listed. With another option available to them, companies can choose the ownership structure that best suits their needs.
Tyler Durden Fri, 12/27/2024 – 06:55
Source: https://freedombunker.com/2024/12/27/public-vs-privately-held-companies-the-shifting-landscape/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
| Online: | |
| Visits: | 1,670,497,516 |
| Stories: | 8,334,018 |
Whistler Blowers, Insiders
