The article discusses the story of Bench, a Canadian fintech company that specializes in accounting and bookkeeping services. Here’s a summary:
Bench’s Demise
Bench was founded in 2013 and had grown to become one of Canada’s largest and most popular accounting firms. However, in December 2022, the company suddenly shut down its operations without warning, leaving over 1,000 employees without jobs and thousands of clients without access to their financial services.
Acquisition by Employer.com
Just days after Bench’s shutdown, a US-based HR tech company called Employer.com announced that it had acquired Bench in a fire-sale deal. Employer.com promised to revive Bench’s operations, rehire many of its former employees, and honor customer contracts.
Uncertainties Remain
While the acquisition has saved hundreds of jobs and provided some relief to Bench’s customers, there are still concerns about the sustainability of the business. The sudden change in ownership and the lack of prior accounting experience among Employer.com’s executives raise questions about whether Bench can continue to provide high-quality services to its clients.
Key Takeaways
- Benchmark was shut down without warning, leaving thousands of employees and customers in a difficult situation.
- Employer.com acquired Bench in a fire-sale deal and promised to revive operations and rehire many former employees.
- There are concerns about the sustainability of the business due to Employer.com’s lack of prior accounting experience and the sudden change in ownership.
Overall, the story of Benchmark highlights the challenges faced by fintech companies and the importance of careful planning and execution when it comes to major business decisions.
