There comes a time when owner-managers of small firms choose, or are forced, to retire. This decision gives rise to a business transfer decision, where the owner-manager must decide whether to transfer the business to a family member, sell the business or shut down the business. While this transfer choice is a key business decision which impacts on the long-run survival and profitability of the firm and the region in which it is located, little is known about what factors influence the owner-manager's decision. In this paper, we explore how firm and regional characteristics impact the transfer decision. Using evidence collected from in-depth interviews with Irish and Scottish (N=236) owner-managers, we find that whilst factors such as the size and location of the firm have the same impact on owner-managers in both countries, the importance of other factors such as sector, gender, the existence of an exit plan and the owner-manager's intentions for the firm differ. We emphasise the need to put incentive mechanisms in place to increase the attractiveness of purchasing a viable small business.