This article reports on the story of Bench, a Canadian accounting firm that went through a series of events that led to its near-collapse and eventual acquisition by Employer.com. Here’s a summary:
The Rise and Fall of Bench
Bench was founded in 2013 with a mission to make accounting easy for small businesses. It grew rapidly and became one of the largest accounting firms in Canada, serving over 60,000 clients. However, things started to go wrong when several major investors, including Bain Capital Ventures, withdrew their funding due to disagreements over Bench’s valuation.
The Shutdown
On December 27, 2022, just before Christmas, Bench announced that it was shutting down operations and laying off its entire staff of around 1,000 employees. The company’s website went dark, and clients were left in the lurch without access to their accounts.
The Acquisition
In a surprising turn of events, Employer.com, a payroll and HR services firm, acquired Bench just days after it shut down. Employer.com promised to revive Benchmark and honor its customers’ contracts. The acquisition was completed in a short period, raising eyebrows about the due diligence process.
Uncertainty Remains
While Employer.com has re-offered jobs to many former Bench employees and pledged to continue servicing customer accounts, there are still concerns about the sustainability of Benchmark’s operations. The sudden firing of all staff on December 27 has raised questions about whether customers will receive the same level of service. Additionally, the fact that Employer.com lacks direct experience in accounting has added to the uncertainty.
Key Takeaways
- Accounting is a complex beast: The story highlights the challenges and complexities involved in providing accounting services.
- Investor relationships are crucial: The withdrawal of major investors had a significant impact on Bench’s operations.
- Due diligence matters: The short timeline for the acquisition raises questions about the thoroughness of the due diligence process.
- Customer loyalty is key: Employer.com’s promise to honor customer contracts and provide continuity is essential for its success.
Overall, the story of Bench serves as a reminder that even successful companies can face significant challenges, and the accounting industry requires specialized expertise and a deep understanding of complex regulations.