The article discusses the acquisition of Bench, an accounting and bookkeeping service company, by Employer.com. Here are the key points:
Bench’s Downfall
- Bench had a sudden shutdown notice on December 27, recommending its clients file for a six-month extension with the IRS to find a new bookkeeper.
- The reason for the shutdown was not clear, but it was speculated that the company was struggling financially.
Employer.com Acquisition
- Employer.com, which specializes in payroll, recruiting, and other HR-related fields, acquired Bench’s assets, including its customer contracts and staff.
- The acquisition was announced on December 27, just hours after Bench’s shutdown notice.
- Employer.com claims to have saved hundreds of jobs and thousands of customers from being left in a "huge lurch."
Uncertainty Around Sustainability
- Despite the acquisition, there are concerns about whether Benchmark will be able to sustain its business.
- Acquisitions typically take months and require extensive due diligence, which would be impossible to conduct over a holiday weekend.
- Employer.com also had no direct experience in accounting until the Bench acquisition.
Concerns About Customer Service
- There are concerns about whether customers will have access to the same quality of service, given the sudden firing of all of Benchmark’s staff on December 27.
- At least some of the former Benchmark employees are being offered only 30-day contracts, which has raised concerns about continuity and job security.
Employer.com Response
- Employer.com’s chief marketing officer, Matt Charney, responded to these concerns by stating that the company is "very very comfortable" with Benchmark’s reputation and track record.
- He also stated that Benchmark was acquired for its people, experience, and customers, who can "help us acquire that expertise very, very quickly."
Overall, the acquisition of Benchmark by Employer.com raises questions about the sustainability of the business and the potential impact on customer service.