Assume that PE firm Omega is purchasing Company Alpha at the end of $2021.$ Purchase multiple is $10$X LTM EBITDA. Company Alpha has $$200$mm of revenues in $2021,$ expected to grow $$25$mm annually for the next $3$ years. Alpha has an EBITDA margin of $50\%,$ which will remain unchanged. The initial leverage of $5$X EBITDA will be taken at the time of the deal. $$75$mm of debt will be paid down before the exit. There is no multiple expansion at the exit $($exit multiple is the same as purchase multiple.$)$ What is the entry$/$purchase value? Prepare the sources and uses of capital table for the LBO.

$(10$ points$)$ What is the value of Company Alpha at exit $($year $3)?$ What is the value of sponsor$$s equity at exit? What is the cash$-$on$-$cash return for the sponsors?