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The Rise and Fall of Bench: A Last-Minute Revival for the VC-Backed Accounting Startup

by Cryptomirror

The article discusses the story of Bench, an accounting and bookkeeping service that was acquired by Employer.com in December 2022 after its sudden shutdown. Here’s a summary:

Background: Bench was founded in 2014 and had grown to become one of the largest players in the accounting and bookkeeping space. However, in December 2022, Bench announced that it would be shutting down immediately, citing financial difficulties.

Acquisition by Employer.com: Just days after the shutdown announcement, Employer.com acquired Bench for an undisclosed amount. The acquisition was completed quickly, with Employer.com rehiring many of Bench’s former employees and extending job offers to a "large number" of them.

Uncertainties surrounding the acquisition: Despite the rapid turnaround, there are still concerns about the sustainability of Bench under new ownership. Specifically:

  1. Due diligence: Acquisitions typically take months and require extensive due diligence, which would be impossible to conduct over a holiday weekend.
  2. Lack of accounting expertise: Employer.com has no direct experience in accounting, instead focusing on payroll, recruiting, and other HR-related fields.
  3. Customer contracts: While Employer.com is honoring customer contracts, there are concerns about whether customers will have access to the same quality of service.
  4. Temporary contracts: Some former Bench employees are being offered only 30-day contracts, which has raised questions about the long-term commitment to the business.

Employer.com’s response: In a statement, Employer.com’s chief marketing officer, Matt Charney, said that the acquisition was well-researched and involved multiple legal firms. He also emphasized that Bench was acquired for its people, experience, and customers, who can "help us acquire that expertise very, very quickly."

Overall, while the acquisition by Employer.com has saved hundreds of jobs and thousands of customer accounts from being left in limbo, there are still significant uncertainties surrounding the long-term sustainability of Bench under new ownership.

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