This article appears to be a detailed report about the demise and subsequent rescue of accounting service company Bench, which was acquired by Employer.com after a last-minute fire sale. Here’s a summary:
Background
Bench, an online accounting service founded in 2013, faced significant issues, including high customer churn rates and failing to meet its own growth projections.
The Sale
On December 27, 2022, Bench announced it would be shutting down due to "unforeseen circumstances." The company’s website recommended customers file for a six-month extension with the IRS to find a new bookkeeper. However, this decision was met with criticism and confusion among Bench’s clients.
The Rescue
On January 1, 2023, Employer.com, a company specializing in payroll and recruiting services, acquired Bench in a last-minute deal. The acquisition allowed Employer.com to save hundreds of jobs and thousands of customers from being left without accounting support.
Uncertainties Remain
Despite the rescue, there are still concerns about the sustainability of Bench’s operations under new ownership. Acquisitions typically take months and involve extensive due diligence, which was impossible in this case. Additionally, Employer.com has no prior experience in accounting, raising questions about whether customers will have access to the same quality of service.
Reactions from Stakeholders
Bench’s former staff are being rehired with some on 30-day contracts, sparking concerns about continuity and potential disruption for customers. However, Employer.com’s chief marketing officer, Matt Charney, expressed confidence in Bench’s reputation and track record, stating that the company was acquired for its people, experience, and customers.
Conclusion
The acquisition of Bench by Employer.com highlights the complexities and challenges faced by companies navigating rapid growth and changing market conditions. While the rescue has saved jobs and preserved customer relationships, there are still uncertainties surrounding the long-term viability of Bench’s operations under new ownership.