The article reports on the story of Bench, a Canadian accounting firm that was acquired by Employer.com after it unexpectedly shut down its operations on December 27. Here are the key points from the article:
Bench’s downfall
- Bench, which had raised over $100 million in funding and valued at around $1.2 billion, suddenly announced that it would be shutting down its operations due to "unforeseen circumstances".
- The company recommended its clients file for a six-month extension with the IRS to find a new bookkeeper.
Acquisition by Employer.com
- Employer.com, a payroll and recruiting firm, acquired Bench’s assets in a last-minute deal over a holiday weekend.
- Employer.com promised to revive Bench’s operations and hire back many of its former staff.
Uncertainties surrounding the acquisition
- The acquisition was unusually quick, with no extensive due diligence conducted by Employer.com.
- There are concerns about whether customers will have access to the same quality of service, given the sudden firing of all of Bench’s staff on December 27.
- At least some of the rehired staff are being offered only 30-day contracts.
Response from Employer.com
- Employer.com’s chief marketing officer, Matt Charney, said that the company feels "very very comfortable" with Bench’s reputation and track record.
- Charney also stated that Benchmark was acquired for its people, experience, and customers, who can help Employer.com acquire accounting expertise quickly.
The article raises questions about the sustainability of Bench’s operations under new ownership and whether Employer.com is equipped to provide high-quality accounting services to Bench’s clients.
