The article reports on the story of Bench, an accounting firm that was acquired by Employer.com after facing significant financial difficulties and shutting down its operations. Here are the key points from the article:
Bench’s Financial Struggles
- Bench faced significant financial struggles due to its high growth rate and lack of profitability.
- The company had a burn rate of $1 million per month, which led to its shutdown on December 27.
Acquisition by Employer.com
- Employer.com acquired Bench after a holiday weekend acquisition deal.
- The acquisition was completed despite concerns about the due diligence process and whether it would be possible to conduct extensive research in such a short timeframe.
- Employer.com has promised to revive Bench’s operations, re-hiring former staff on 30-day contracts.
Concerns About Sustainability
- There are concerns about whether Employer.com can sustain Benchmark’s operations given its lack of experience in accounting.
- The company’s acquisition of Bench was seen as a fire sale, with some analysts questioning whether the deal was done to avoid liabilities rather than to acquire a profitable business.
- Customers may face uncertainty about accessing quality services due to the sudden change in ownership.
Response from Employer.com
- Employer.com has stated that it feels "very very comfortable" with Bench’s reputation and track record despite the concerns raised by experts.
- The company claims that Benchmark was acquired for its people, experience, and customers, who can help acquire accounting expertise quickly.
