Case Study | Acquco Acquires Ultra Clarity Cables Amazon FBA Business
Ultra Clarity Cables began as a small retail store selling electronics. In 2016, they took their business on Amazon, and after scaling their operations and seeing solid returns, they reached out to us at Acquco to sell. Less than 30 days later, we officially welcome Ultra Clarity Cables to the Acquco family of brands and look forward to continuing to grow their business and optimize with greater economies of scale.
“Even before the deal was closed, Acquco gave me great advice on different ideas to help grow my business. Acquco has the expertise and experience to really help take my business to the next level.”
About Ultra Clarity Cables
When Ultra Clarity Cables started selling their electronics on Amazon in 2016, they saw it as an important way to diversify their revenue and a great platform for sellers to exchange their goods with buyers. As they started to build, sell more product, build social proof through good reviews, their online presence grew and Amazon sales started to outpace offline sales. Shortly thereafter, in order to double down on the higher areas of growth for the company, they pivoted to becoming an online-only business, and focused on their best-selling products rather than a wide array of electronics. Ultra Clarity Cables quickly became a category leader in ethernet, HDMI, and coaxial cables.
The Time Was Right to Sell
Ultra Clarity Cables founder Bill Lam was proud of his growing business, but he was also looking at the reality of his personal situation: he had a child and another one on the way, and he knew he didn’t have the time and attention to continue to build and grow the business at its nearly limitless potential. There was a lot he wanted to do, but lacked the resources and energy, so instead of exhausting himself on trying to do everything half as well, he began to consider the possibility of selling.
The problem of not having enough time to dedicate to the business quickly became a new problem: Lam couldn’t find the right seller. He looked at a few firms and worked with a broker, but he wasn’t able to find quite the right fit; either the buyers didn’t have the right expertise to continue to grow the brand, their broker commission fees were exorbitant, or they were undervaluing the company. It took about five months for Ultra Clarity Cables to find the right team to really take care of what was built, and to nurture a growing business.
The Acquco Choice
A mutual connection referred the Ultra Clarity Cables team to Acquco. “The idea of selling what we built to another operator impressed me, as well as their professionalism,” explains Lam. Acquco checked all the boxes:
- A reliable company with an impressive track record and well-known investors
- Founded by ex-Amazonians with a lot of experience growing Amazon brands
- A competitive offer without the go-between of a broker
Working closely with the Ultra Clarity Cables team, we were able to provide an offer and take the company through the entire process in less than 30 days.
“Not having enough time has always been a big challenge for me,” Lam says. “I’ve worked with other buyers and there have always been cases where I felt my time wasn’t being respected, for example there would be long lists of questions that were formulaic and not relevant to my business. Acquco was completely different, and really held my hand throughout — from building out the P&L, to asking the right, value-driving questions, to giving me growth and operations pointers on my next ecommerce business.”
Aside from time, the Ultra Clarity Cables team was met with a competitive offer that valued the incredible business they built. “From the beginning Acquco was very professional and had a structured process with clear timelines. The best part was I got an amazing deal, better than what other firms offered me.”
The Ultra Clarity Cables team was assigned a dedicated General Manager, Brand Manager and team to guide them through every step of the way, and to set the brand up for success for long after the acquisition. “I still get updates on how my business is doing every quarter!” Lam adds.
Life has been good since the sale of Ultra Clarity Cables. “Shortly before COVID hit, we were able to do some traveling with all that extra money. The cash came fast, too, just in time to buy a new home for our growing family,” Lam says.