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U negotiate the right level of working capital as part of analysis you and your accountants do. Google working capital peg for in depth overview. Simple way could be to take an average. Need to watch out for multi year trends (don’t want to be screwed by ppl accelerating receivables for eg)
You typically see valuations on a cash-free, debt-free basis. The uses of cash in an LBO are really just total cash consideration which is applied to net acquired assets, which includes cash-free nwc, with the balance creating the goodwill asset for the opening balance sheet.
Not sure I follow your thinking related to minimum cash balance but with a cash-free, debt-free valuation, any cash on the balance sheet at close would be given to the seller so any desired or “minimum” cash needed for the opening balance sheet would be funded by the buyer for the opening balance sheet and would also be a use of cash.
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