The article discusses the story of Bench, a Canadian accounting and bookkeeping service that was acquired by Employer.com at the last minute after it had shut down due to financial difficulties. Here are the key points from the article:
Bench’s Downfall
- Bench faced significant challenges due to its business model, which relied heavily on recruiting accountants and bookkeepers in Canada.
- The company struggled to attract and retain talent, leading to high employee turnover rates.
- Bench’s management team was unable to adapt quickly enough to changes in the market, including the impact of COVID-19.
The Last-Minute Acquisition
- On December 27, 2022, Benchmark Group (Benchmark Group) announced that it would be ceasing operations due to financial difficulties.
- However, just hours later, Employer.com acquired Bench and its assets for an undisclosed amount.
- The acquisition was seen as a surprise by many in the industry, given the short notice and the significant challenges facing Bench.
Uncertainty Remains
- Despite the acquisition, there are still significant uncertainties surrounding Bench’s sustainability.
- Many of Bench’s staff were let go on December 27, and it is unclear how Employer.com will be able to retain them or attract new talent.
- There are also concerns about whether customers will have access to the same quality of service under Employer.com.
Employer.com’s Plans
- Employer.com has promised to honor customer contracts and fully service their accounts.
- The company is re-extending job offers to a "large number" of former Bench staff, but it is unclear how many employees will be retained long-term.
- There are also concerns about whether Employer.com has the necessary expertise to provide high-quality accounting services.
Overall, the story of Bench highlights the challenges facing startups in the accounting and bookkeeping space, as well as the importance of adaptability and resilience in today’s fast-changing business environment.
