Family entrepreneurship is an important topic in the world, but also in the Republic of Croatia, as family businesses represent an important part of every economy. A family enterprise is based on linking three basic elements: family, ownership of capital, and management role in the enterprise. Keeping in mind that family businesses are growing and developing, we can divide them into active, latent, and those who work with the absent owner. Family businesses have their advantages and disadvantages, they see family culture, and are important for family survival. The critical phase in the life cycle of family businesses is the transfer of business from one generation to the next. When a business comes to the stage of business transfer, generation conflicts often arise, which can endanger the survival of a business. For owners, it may be the toughest time as they have to decide on the type of transfer that is best for company survival, while at the same time it is expected from them to provide financial support for the family and meet the expectations of the stakeholders. The paper consists of a theoretical overview and empirical research. In the theoretical part, family entrepreneurship and the transfer of business to a family enterprise were described. The empirical part of the paper presents the process of family business succession of the company Paralela L.t.d.