Welcome to Management in Focus, the monthly newsletter from Galeazzi & Associados. Every last Monday of the month, you will receive exclusive analyses, topics to keep an eye on, and insights from Galeazzi & Associados on what's shaping the market and business landscape. Our goal is to enhance your planning and decision-making with the professional insights and perspectives provided by Galeazzi & Associados.

In this second edition, it's impossible to ignore the high volume of debt renegotiations and judicial recoveries of nationally recognized companies. According to figures released by Serasa, requests for Judicial Recovery (RJ) in the country grew by 43% in April 2023 compared to the same period last year. The majority of requests came from the service sector. This is the last attempt by businesses before filing for bankruptcy, a number that also increased in the same time frame, rising by 12.3%.

And those who think this economic downturn only affects large companies, especially in retail, are mistaken. According to Serasa, small and medium-sized enterprises led the requests for judicial recovery. Another class of businesses also grappling with these issues are family-owned companies, which are often resistant to more radical course corrections.

The message we need to convey once again is that of prevention or anticipation. It is common for companies to seek our assistance when debts have already exceeded the 'acceptable' limit. Everyone expects us to work miracles in highly complex situations. Therefore, the advice we offer is for managers to pay closer attention to the variables under their control—namely, costs and expenses—and to observe their finances with pragmatism, seriousness, and rigor. As long as the scenario remains unchanged, the difference between those who will survive and those who will face problems lies in the speed of decision-making. Therefore, do not hesitate.

Until next month!