Do I still need a proper valuation if I'm just selling the business to my kids?

Yes. Even though there's no arm's-length negotiation, an independent valuation still does real work: it establishes a defensible fair-value figure for tax purposes, since transfers between related parties can be treated differently by tax rules if the price doesn't reflect fair value; it protects the transaction if other family members later question whether the price was fair; and it gives the purchasing child a clear, documented basis for financing and their own future planning.

Skipping a valuation to keep things informal is one of the more common mistakes in family business transitions, because it removes the objective evidence that would otherwise show the transaction was handled properly. A professional valuation doesn't have to change the ultimate price the family agrees on — a parent can still choose generous terms — but it should exist and be documented, so everyone, including tax authorities and other family members, can see the deal was entered into with open eyes. Talking to a Treadstone business lawyer about how to structure the sale around that valuation is a sensible next step.