Entrepreneurship is a generator of the progress of every economy. Family businesses are an important part of entrepreneurship in general and a large share of businesses are family businesses. Some of the largest companies in the world are family businesses. Family businesses link family, property to capital, and management role in the company. The advantages of family businesses in relation to non-family are more flexible and quicker ways to make decisions and greater dedication of employees to business, because the family itself depends on it. Family businesses through their life cycle are faced with numerous obstacles, the largest of which is the transfer of business. The transfer of ownership in a family business is most affected by the family, which can represent both a mitigating and troublesome circumstance. The result of unprepared and inadequate transfer can mean a company's failure. Small percentage of family businesses succeeds in experiencing the second generation of owners. The owner of the company has several choices when transferring ownership, of which the most frequent, is inheritance, especially to family members. In cases where the company owner does not have an adequate heir, he must make a decision about the sale of the company (in whole or in part) or closing the business. In the empirical part of this paper, the company Agro Bovis d.o.o., which is engaged in the production of fresh cow's milk from the establishment to the current phase of the life cycle, is shown. Also this paper deals with the problem of transferring ownership in the mentioned company.