This article discusses the acquisition of accounting firm Bench by payroll and recruiting company Employer.com. Here are some key points from the article:
Background: Bench, an accounting firm that used artificial intelligence (AI) to provide bookkeeping services to small businesses, was acquired by Employer.com after a sudden shutdown notice was sent to its customers.
Acquisition details:
- The acquisition occurred over a holiday weekend, which is unusual for acquisitions of this type.
- Employer.com had no direct experience in accounting until the Bench acquisition, instead focusing on payroll, recruiting, and other HR-related fields.
- The acquisition involved "multiple legal firms" and Employer.com claims to feel "very very comfortable" with Bench’s reputation and track record.
Uncertainties:
- There are concerns about whether customers will have access to the same quality of service given the sudden firing of all of Bench’s staff on December 27.
- At least some former staff are being offered only 30-day contracts, which may be a temporary measure.
- The sustainability of Bench’s business model is uncertain, given its last-minute fire sale.
Employer.com’s plans:
- Employer.com claims to be committed to honoring customer contracts and fully servicing their accounts.
- It will re-extend job offers to a "large number" of former Bench staff.
- It aims to acquire expertise in accounting through the acquisition.
Overall, the article suggests that the acquisition is an unusual one, with significant uncertainties surrounding its sustainability and potential impact on customers.
