The article discusses the story of Bench, a Canadian fintech company that provides accounting services to small businesses. The company’s rapid growth and valuation of over $1 billion made it an attractive target for acquisition. However, in December 2022, the company announced that it was shutting down its operations and laying off nearly all of its employees.
The article goes on to explain that the shutdown notice recommended clients file for a six-month extension with the IRS to find a new bookkeeper. However, just days later, Employer.com, a US-based HR technology firm, acquired Bench’s assets and announced plans to revive the company.
Employer.com claims that it will honor customer contracts and fully service their accounts, but there are still concerns about the sustainability of the acquisition and whether customers will have access to the same quality of service. Some employees who were laid off on December 27 were only offered 30-day contracts, which has raised questions about the long-term employment prospects for these individuals.
The article highlights some of the challenges facing Employer.com in acquiring and reviving Bench’s operations. Acquisitions typically take months and require extensive due diligence, but in this case, the deal was completed over a holiday weekend. Additionally, Employer.com has no direct experience in accounting and must quickly acquire the necessary expertise to provide high-quality service to Bench’s customers.
Overall, the article suggests that the acquisition of Bench by Employer.com is a complex and uncertain situation, with many challenges ahead for both parties involved.
Some possible questions or talking points based on this article could include:
- What are the implications of this acquisition for the accounting industry and small businesses?
- How will Employer.com acquire the necessary expertise to provide high-quality service to Bench’s customers?
- Will the 30-day contracts offered to some employees be a temporary measure, or is this indicative of a larger issue with long-term employment prospects at Employer.com?
- What does this deal say about the state of the fintech industry and the challenges faced by startups in providing accounting services?