The article discusses the story of Bench, a Canadian accounting firm that was acquired by Employer.com in December 2022. Here’s a summary:
Background: Bench was founded in 2014 and offered bookkeeping services to small businesses. However, in December 2022, it suddenly shut down operations without warning its clients or employees.
The Shutdown: On December 27, 2022, Bench sent an email to its clients informing them that the company would be shutting down immediately. The email recommended that clients file for a six-month extension with the IRS to find a new bookkeeper.
Employer.com Acquisition: However, just two days after the shutdown, Employer.com acquired Bench’s assets and announced plans to revive the business. The acquisition was completed in a short period of time, which is unusual for such deals.
Uncertainty Remains: Despite the promises made by Employer.com, there are still concerns about the sustainability of Bench’s operations. Some former employees have been offered only 30-day contracts, and it is unclear whether customers will have access to the same quality of service as before.
Key Issues:
- Lack of Expertise: Employer.com has no direct experience in accounting, which raises questions about its ability to provide high-quality services.
- Uncertainty around Sustainability: The rapid acquisition process and the lack of due diligence raise concerns about whether Bench’s operations can be sustained.
- Customer Confidence: Clients may be hesitant to continue using Bench’s services, given the abrupt shutdown and uncertainty surrounding the company’s future.
Overall, the story highlights the challenges faced by startups in the accounting industry and the importance of careful planning and execution when acquiring a business.
