The article reports on the acquisition of Bench, an accounting firm, by Employer.com. Here are the key points:

Background: Bench was founded in 2014 and raised over $150 million from investors such as Shopify and Bain Capital Ventures. However, the company struggled to turn a profit and faced financial difficulties.

Acquisition: In December 2022, Benchmark’s board of directors voted to shut down the company, recommending that its clients file for a six-month extension with the IRS to find a new bookkeeper. However, Employer.com stepped in and acquired Bench just before Christmas, hiring back hundreds of employees on temporary contracts.

Uncertainties: The acquisition raises several concerns:

  1. Acquisition process: The deal was completed quickly over a holiday weekend, which is unusual for acquisitions.
  2. Accounting expertise: Employer.com has no prior experience in accounting and focuses on payroll, recruiting, and other HR-related fields.
  3. Customer service: There are concerns about whether customers will have access to the same quality of service with new staff on temporary contracts.

Employer.com’s response: The company’s chief marketing officer, Matt Charney, stated that the deal was carefully planned and involved multiple legal firms. He assured that Employer.com is "very very comfortable" with Bench’s reputation and track record. However, some employees are being offered only 30-day contracts, which raises further concerns about the sustainability of the business.

Timeline:

  • December 27: Benchmark’s board votes to shut down the company.
  • Same day: Employer.com acquires Benchmark, hiring back hundreds of employees on temporary contracts.
  • January 1 (first week): Employer.com extends job offers to a "large number" of former Benchmark staff and promises to honor customer contracts.

The article highlights the complexities and uncertainties surrounding the acquisition, raising questions about the long-term sustainability of the business.