The market for selling and buying small and medium-sized companies in Croatia as becoming more and more dynamic. Rarely a week goes by without news about a sale or takeover of a particular company appearing in the media. Companies are most often bought by foreign investors, but also by investment funds that enter the Croatian market due to favorable economic conditions. Equally, domestic companies have an increasingly easier and simpler approach to expanding or selling their companies to the EU market. Every company has an owner/owners who cannot manage the company forever, which is exactly why entrepreneurs who start businesses, as well as those who are approaching retirement, need to think about what to do next. When the transfer of business to family members is not possible due to various circumstances, the option of selling the company appears. The topic of this paper is about the buying and selling market for small and medium-sized companies in Croatia. This topic is important for entrepreneurs who do not have the option of transferring the business to family members, so they should devote themselves to exploring the process of buying and selling a company. The mentioned topic is insufficiently promoted among entrepreneurs and there is still not enough discussion about it, and most entrepreneurs are not familiar with the possibilities of selling their own company. Entrepreneurs can face various challenges in business management- the desire to expand their business, adapt to new market trends, change the ownership structure, financial crisis, desire to retire, etc. More and more well-known ways of solving such challenges are found in the merger of small and medium-sized companies. These processes, especially in developed markets, often involve agencies for mediation in the purchase and sale of companies, investment advisors, financial institutions and online platforms. Taking over the business of another company enables customers to quickly enter the market, access to the base of existing clients, take over a well-known brand, etc. The advantages of selling a company for the seller include capitalizing the business, reducing the risk associated with the continuation of business (especially in uncertain economic conditions), strategic exit due to changes in career direction, desire to reduce work obligations, etc. Challenges when buying a company refer to the significant investments required to buy a company, possible existing business problems, debts or operational challenges, etc. If the process of buying and selling small and mediumsized companies goes smoothly, by respecting the legal regulations, laws and norms, the mentioned disadvantages of buying and selling can be minimized. In the theoretical part of the work, the increasingly frequent dynamics, trends and factors that are reflected in the segment of the purchase and sale of small and medium-sized enterprises on the market, including economic, legal, and sociocultural factors, are explained. The empirical part of the paper presents the results of a research based on the collection of primary data through an interview with a business owner who is in the process of selling his own business. Using an example from practice, this paper shows the challenges faced by entrepreneurs when choosing to sell as a way to exit the company when deciding on retirement.