Family businesses constitute a significant part of the economic structure, not only in Croatia but also globally. One of the most critical moments in the life cycle of a family business is the transfer of the business to the next generation. This process involves not only the formal transfer of ownership but also the transfer of leadership, knowledge, values, and culture that are crucial for the long-term success of the business. The transfer of business can be very complex and is often accompanied by risks, including potential conflicts within the family, inadequate preparation of successors, and improper management of legal and financial aspects. The aim of this paper is to provide a comprehensive overview of the issues related to business transfer in family businesses, with a special focus on the challenges that arise in this process and the strategies that can contribute to a successful transfer of the business to the next generation. The paper analyzes theoretical approaches and models of business transfer, examines the role and preparation of successors, and identifies key factors that contribute to the success or failure of this process. Through the analysis of specific case studies of successful and unsuccessful business transfers, the paper offers a deeper understanding of the real challenges faced by family businesses and provides guidelines for optimizing the transfer process. Special attention is given to the specificities of family businesses within the European Union, with a particular focus on the demographic and socio-economic characteristics of family businesses in the Republic of Croatia.