The Rise and Fall of Bench, A VC-Backed Accounting Startup’s Remarkable Downfall and Revival Over the Holidays
The article discusses the story of Bench, a Canadian accounting and bookkeeping service that was acquired by Employer.com after it faced financial difficulties. Here are the key points:
- Financial struggles: Bench had been struggling financially, leading to a shut down notice being sent to its clients on December 27.
- Acquisition by Employer.com: However, just hours later, Employer.com stepped in and acquired Benchmark, as it is now known, agreeing to honor customer contracts and hire back many of the laid-off staff members.
- Uncertainty remains: Despite the acquisition, there are still uncertainties surrounding Bench’s sustainability, given its last-minute fire sale, which typically takes months to complete with extensive due diligence.
- Concerns about quality of service: Some customers may be concerned about whether they will have access to the same level of service, given that many staff members were suddenly fired on December 27.
- 30-day contracts: At least some former Bench employees are being offered only 30-day contracts, which could raise concerns about long-term employment and continuity.
Overall, the story highlights the challenges faced by startups in the accounting and bookkeeping space and the uncertainty surrounding acquisitions that occur under pressure.