This article reports on the story of Bench, an accounting and bookkeeping service that was acquired by Employer.com in a last-minute fire sale after its founder laid off all 150 employees on December 27. Here are some key points from the article:
Background: Bench was founded in 2014 and had grown to become one of the leading bookkeeping services for small businesses. However, it struggled with scaling and eventually laid off all its employees.
Acquisition by Employer.com: In a surprise move, Employer.com acquired Bench’s assets, including its customer contracts and data, after Benchmark’s founder laid off all its employees on December 27. The acquisition was reportedly done in just a few days over the holiday weekend.
Uncertainty about sustainability: Despite the acquisition, there are concerns about whether Benchmark will be able to sustain itself as an accounting service. Employer.com has no direct experience in accounting and has not conducted extensive due diligence on Benchmark’s assets.
Return of former employees: Employer.com is re-extending job offers to a "large number" of former Benchmark staff, but at least some are being offered only 30-day contracts. This has raised concerns about whether customers will have access to the same quality of service.
Promises from Employer.com: Employer.com is promising to honor customer contracts and fully service their accounts, as well as re-extend job offers to many former Benchmark staff. However, these promises are not necessarily binding, and it remains to be seen whether Employer.com can actually deliver on them.
Concerns about accounting expertise: The article notes that Employer.com has no prior experience in accounting and is acquiring a company that was struggling with scaling issues. This raises concerns about whether Employer.com will be able to acquire the necessary expertise to continue providing quality accounting services.
Overall, this story highlights the challenges of acquiring and integrating companies in the tech industry, particularly when it comes to complex areas like accounting and bookkeeping. It also raises questions about the sustainability of such acquisitions and the impact on customers and employees.
