For many Tennessee business owners, your company is more than just a source of income — it’s your legacy, your investment, and your family’s security. But what happens if a co-owner retires, becomes disabled, passes away, or simply decides to leave the business? Without a clear plan in place, disputes can arise, valuations can be challenged, and the stability of the company can be put at risk.
This is where a buy-sell agreement becomes essential. At Champagne Law Firm, we help business owners across East and Middle Tennessee draft customized buy-sell agreements that provide certainty, prevent conflict, and protect long-term value.
What Is a Buy-Sell Agreement?
A buy-sell agreement is a legally binding contract between co-owners of a business. It sets the rules for what will happen to an ownership interest if certain “triggering events” occur, such as:
- Death of a co-owner
- Divorce or family changes affecting ownership
- Disability or incapacity
- Bankruptcy or financial distress
- Retirement or voluntary exit
By addressing these possibilities upfront, owners avoid disputes and ensure smooth transitions when life events occur.
Why Every Business Needs One
Without a buy-sell agreement, the transfer of ownership can become unpredictable and disruptive. For example:
- Heirs may inherit an ownership stake they do not want or cannot manage.
- Remaining owners may struggle to finance a buyout without planning.
- Disputes over valuation can lead to costly litigation.
A buy-sell agreement provides a roadmap, giving clarity to owners, heirs, employees, and clients.
The Kelly Champagne-Deutekom Advantage
What makes Kelly Champagne-Deutekom particularly effective in drafting buy-sell agreements is her rare combination of financial and legal expertise.
- As a financial advisor, Kelly worked with business owners and entrepreneurs on valuations, buyout strategies, and funding mechanisms such as insurance. She understands how financial institutions and investors view ownership transfers.
- As an attorney, she brings the legal precision needed to enforce these agreements under Tennessee law, ensuring they hold up in court and reflect your true intentions.
This dual background allows Kelly to design agreements that are not only legally sound but also financially practical.
Common Structures for Buy-Sell Agreements
At Champagne Law Firm, we tailor each agreement to the business and its owners. The most common structures include:
- Cross-Purchase Agreements – Co-owners agree to purchase each other’s shares directly if a triggering event occurs.
- Redemption Agreements – The business entity itself buys back the departing owner’s shares.
- Hybrid Agreements – A combination of both, offering flexibility based on circumstances.
- Insurance-Funded Buyouts – Life or disability insurance policies are often used to provide liquidity for buyouts without straining business resources.
Planning Early Is Key
The best time to create a buy-sell agreement is long before it’s needed. Waiting until a crisis occurs often leads to rushed, costly, or contested solutions. By planning ahead, you ensure:
- A fair valuation method is already in place
- Funding sources are identified and secured
- Family members and heirs are protected
- Business continuity is maintained
Champagne Law Firm: Defending Today. Planning Tomorrow.
Your business deserves protection against the unexpected. With her unique background as a financial advisor and attorney, Kelly Champagne-Deutekom provides Tennessee business owners with buy-sell agreements that bring peace of mind and stability. If you’re ready to safeguard your company’s future, contact Champagne Law Firm today. With offices in Nashville, Sevierville, and Rogersville we’ll help you design an agreement that protects your investment, your family, and your legacy.
