The article discusses the acquisition of accounting software company Bench by Employer.com. Here are the key points:
Background: Bench is an accounting software company that provides bookkeeping services to small businesses. It was founded in 2014 and had grown rapidly, but faced financial difficulties and announced a shutdown notice to its clients.
Acquisition: Just before Christmas, Employer.com acquired Benchmark for an undisclosed price. The acquisition was completed over the holiday weekend, which is unusual for acquisitions due to the complexity and time required for due diligence.
Uncertainties: There are several uncertainties surrounding the acquisition:
- Job security: Many of Bench’s employees were let go on December 27, and only a "large number" of them are being re-hired with 30-day contracts.
- Service continuity: Customers may be concerned about whether they will receive the same quality of service from Employer.com as they did from Bench.
- Accounting expertise: Employer.com has no prior experience in accounting, and it is unclear whether it can provide the same level of expertise as Bench.
Employer.com’s response: Employer.com’s chief marketing officer, Matt Charney, said that the company feels "very very comfortable" with Bench’s reputation and track record. He also stated that Benchmark was acquired for its people, experience, and customers, who can help Employer.com acquire accounting expertise quickly.
Next steps: It is unclear how long it will take for Employer.com to stabilize the business and provide continuity of service to clients. The company has promised to honor customer contracts and fully service their accounts. However, there are concerns about whether this can be done with a new management team and without disrupting the business further.
