LBO of Acme Co$.$ In it$,$ structured the deal as follows:

Gross enterprise value: $$148,528,000$

Less Debt: $-$ $$28,126,000$

Plus Excess Cash: $$5,000,000$

Net Purchase Price to Sellers $$125,402,000$

then created the $$uses of funds$$ and $$sources of funds$$ charts as follows:

Uses of Funds

Purchase price payable to seller @ closing $ $125,402,000$

Pay off existing target debt $ $28,126,000$

Transaction expenses $(2\%$ Enterprise Value$)$ $ $3,321,500$

TOTAL @ closing $ $156,849,500$

Sources of Funds

Excess Cash From Seller's Balance Sheet $ $5,000,000$

Senior Secured Debt $($Based upon $80\%$ A$/$R and $50\%$ Inventory$)$ $ $15,199,000($$$9,876,000+5,323,000)$

Senior Unsecured Debt $($Based on $2\mathrm{.}5$ times of $1$st yr$.$ Projected Cash Flow$)$ $ $54,447,500$

Subordinated Convertible Debt $ $40,000,000$

Total from Sources Other Than Equity $ $114,646,500$

Amount of Equity to be Raised $ $42,203,000$

TOTAL $$156,849,500$

Suppose instead that the buyer assesses an enterprise value of $$160,000,000$ and anticipates a transaction fee of $1\%$ of enterprise value. What will be the updated deal structure $($including net purchase price payable to sellers, sources of funds and uses of funds$),$ assuming that all else remains the same and that the firm cannot raise any more than $40,000,000$ in convertible debt?