Daybreak Capital Partners Research
Advisory Approach
Daybreak Capital Partners is a specialty investment and merchant banking firm founded in 2003 and dedicated to serving companies and investors in the middle and lower middle market. The firm operates on a distinctive thesis: "Run by CEOs to Serve CEOs." This positioning reflects the firm's foundational premise that senior-level investment banking service combined with expert industry specialists produces superior outcomes for clients in the marketplace.
The firm's philosophy centers on the belief that advisors with substantial prior operating experience as CEOs and Presidents can more fully appreciate the special attributes of their clients and better present and position their businesses in the market. This operational pedigree differentiates Daybreak from pure-play investment banks without founder-operator DNA.
Daybreak specializes in sell-side M&A advisory, acquisition finance, private equity and debt financing, valuations, fairness opinions, strategic options analyses, and proprietary investing. The firm commits its own capital alongside clients in select situations, demonstrating conviction and alignment of interests.
Sector Focus
Daybreak Capital Partners maintains active practices across five primary industry sectors:
Advanced Industrials: The firm advises on precision manufacturing, contract manufacturing, specialty components, and industrial services. Recent deal activity includes the facilitation of Ctek Inc.'s sale to Digi International (2021), a provider of industrial IoT automation devices. The firm's advanced industrials practice attracts clients across discrete manufacturing, assembly, and industrial equipment categories.
Technology & Business Services: Daybreak is actively involved in technology M&A, including industrial software, IoT platforms, and business services. The firm advised on Inertial Labs' acquisition of Memsense (2021), a high-performance inertial measurement unit manufacturer serving aerospace, defense, and commercial applications. The firm also facilitated Boyle Software's acquisition by Beyondsoft (2020). Recent venture/growth equity participation includes the Peripheral Labs seed round (2025) led by Khosla Ventures.
Healthcare: The firm maintains a dedicated healthcare practice with sector specialists Ken West and Jim Woodward. Recent activity includes involvement with Lemonaid Health, an online telemedicine platform acquired in 2025. The healthcare focus spans both healthcare services and healthcare products.
Building Materials: A focused practice serving building products manufacturers, construction materials, and building technology companies. This sector is co-led with advanced industrials expertise given manufacturing overlap.
Consumer & Retail: Daybreak advises on consumer products, consumer services, and retail-focused transactions, with particular strength in family-owned and founder-operated businesses.
Deal Track Record
According to Tracxn (as of January 2026), Daybreak Capital Partners has facilitated 14 M&A transactions. Confirmed deals include:
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Inertial Labs/Memsense Acquisition (December 2021): Advised Inertial Labs, Inc., a designer and manufacturer of inertial sensors and control technologies for aerospace, defense, drone, robotics, and industrial applications (customers include Rockwell Collins, Raytheon, U.S. Air Force, NASA, Ferrari, Garmin, Elbit Systems). The acquisition of Memsense, a high-performance IMU manufacturer, enabled vertical integration of critical components and expanded technological reach.
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Ctek Inc./Digi International Sale (July 2021): Served as investment banker to Ctek Inc., a provider of industrial IoT automation devices and cloud monitoring solutions. Seller advised on sale to $700M publicly-traded Digi International (NASDAQ: DGII). Ctek's wireless SCADA devices and edge computing solutions serve agriculture, cold chain, water management, power generation, and industrial security applications globally.
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Boyle Software/Beyondsoft Acquisition (March 2020): Facilitated software acquisition transaction.
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CDS/New State Capital Partners Transaction (August 2019): Advised on transaction with New State Capital Partners and co-advisors.
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Lemonaid Health Acquisition (2025): Daybreak Capital Partners was among acquirers of Lemonaid Health, an online telemedicine platform delivering affordable healthcare.
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Thermal Solutions/Arlington Capital Transaction (May 2005): Facilitated Arlington Capital Partners' acquisition of Thermal Solutions.
Firm founder Jon Tebol has personally executed 250+ investment banking transactions across diverse industry sectors and transaction types, including corporate sales, divestitures, management buyouts, recapitalizations, public offerings, and growth financings. One notable transaction, Specialty Coating Systems Inc., was recognized as a "Deal of the Year" by both The Deal magazine and Buyouts.
The firm's transaction experience spans deal sizes from $10M to $100M+ enterprise value, with particular concentration in the $25M-$100M range typical of lower middle market advisory.
Process & Fee Structure
While specific fee structures are not publicly disclosed, the firm offers modified Lehman, equity commitment structures, and retainer-based engagement models. The firm emphasizes institutional-quality sell-side processes with comprehensive quality of earnings support, management presentation preparation, data room structuring, and buyer identification and outreach.
Engagements typically span 6-9 months from initial engagement through close, involving broad buyer outreach to strategic acquirers, private equity firms, and family offices.
Buyer Network
Daybreak Capital Partners has demonstrated strength with private equity relationships, as evidenced by recent deal activity. The firm acts as both advisor to sellers and co-investor/equity participant, indicating access to capital sources and deal networks. Recent growth equity participation (Peripheral Labs, Khosla Ventures co-investment) demonstrates relationships with tier-1 venture capital and growth equity firms.
The firm's buyers in historical transactions include strategic acquirers (Digi International, Beyondsoft), private equity sponsors, and family offices. Transaction types span both strategic acquisitions and PE-backed recapitalizations.
Competitive Positioning
Daybreak differentiates through founder-operator credibility (CEO-led advisory), sector expertise (dedicated practice leaders in advanced industrials, healthcare, technology), and proprietary capital commitment (firm invests alongside clients). The team's pedigree at leading middle-market banks (Jon Tebol spent 7 years at RBC Capital Markets, then founding role at Tucker Anthony Sutro, 7 years at Stifel/Legg Mason) provides institutional M&A discipline combined with entrepreneurial ownership mentality.
Team
The firm has approximately 10+ professional advisors led by founder Jon Tebol (CEO, 25+ years M&A experience, 250+ transactions). Senior team includes Ajay Khanna (Managing Director, technology/business services lead), Ed Johnson (Sector Specialist, advanced industrials/technology), Ken West (Sector Specialist, healthcare), Jim Woodward (Sector Specialist, healthcare), Doug Juanarena (Sector Specialist, advanced industrials/technology), Bruce Robinson (Sector Specialist, advanced industrials/technology), Steve Van Kouteren (Sector Specialist, advanced industrials/building materials), David Hoffman (Sector Specialist, business services/consumer), and Craig Tebol (Vice President).
Geographic Coverage
Headquartered in New York City (62 William St, NYC 10005), with team members located in Denver, Palm Beach, and Alpine. US-focused with concentration in major industrial and technology hubs.
Not a Fit If
The firm focuses on middle and lower middle market (typically $25M-$100M+ TEV). Very small transactions below $10M TEV may fall outside typical engagement parameters. The firm emphasizes institutional-quality processes, so clients requiring abbreviated timelines or limited buyer outreach may not be ideal fits.