The article discusses the acquisition of Bench, an accounting and bookkeeping company, by Employer.com. Here are the key points:
Background: Bench was facing financial difficulties and had shut down operations on December 27, leaving hundreds of employees without jobs and thousands of customers in a lurch.
Acquisition: Employer.com acquired Bench just a few days later, over a holiday weekend, with no prior experience in accounting. The acquisition was announced through a series of tweets by Employer.com’s CEO, Matt Tanevich, who claimed that the company had saved hundreds of jobs and thousands of customers from being left without service.
Uncertainties: Despite the claims made by Employer.com, there are several uncertainties surrounding the sustainability of Bench’s business model. The acquisition was completed in a short span of time, which is unusual for such deals. Additionally, Employer.com has no prior experience in accounting, and it remains to be seen whether they can provide the same level of service as Bench.
Employee concerns: Some former employees of Bench have expressed concerns about their employment status, with at least some being offered 30-day contracts rather than permanent positions.
Customer concerns: Customers who were left without service by Bench’s shutdown are now uncertain about what to expect from Employer.com. While Employer.com claims that they will honor customer contracts and provide the same level of service as Bench, there is no guarantee that this will be the case.
Overall, the acquisition of Bench by Employer.com raises several red flags and highlights the challenges faced by startups in the accounting and bookkeeping space.
