The article discusses the story of Bench, an accounting software company that was acquired by Employer.com after it went through a last-minute fire sale. Here are some key points from the article:
Bench’s downfall: The company was struggling financially and was unable to find a buyer for its assets. In a last-minute effort to save the business, its founder, Parker Conrad, sold the company to Employer.com over the holiday weekend.
Employer.com’s acquisition: Employer.com, a payroll and recruitment software company, acquired Bench in a deal that is believed to be worth hundreds of millions of dollars. The acquisition was completed without any prior experience in accounting by Employer.com.
Uncertainties surrounding the acquisition: Despite the promises made by Employer.com to revive Bench, there are still many uncertainties surrounding the future of the company. These include:
- Whether customers will have access to the same quality of service as before
- Whether the new management will be able to retain key employees and clients
- How Employer.com plans to integrate Bench’s technology and expertise into its own business
Concerns about short-term contracts: Some former employees of Bench were offered only 30-day contracts by Employer.com, which has raised concerns about their job security. However, the company’s Chief People Officer, Jennifer Bouyoukos, said that these contracts are temporary measures to ensure continuity while the necessary infrastructure for long-term employment in Canada is set up.
Future outlook: The article notes that acquisitions typically take months and require extensive due diligence, which would be impossible to conduct over a holiday weekend. This raises questions about whether Employer.com has fully understood the complexities of accounting and whether Bench will be able to continue operating smoothly under its new ownership.
Overall, the article highlights the challenges faced by companies like Bench in navigating the complex world of tech acquisitions and the importance of careful due diligence in such deals.
