HEAL THYSELF. Serial corporate fixer-upper Melrose Industries could do with some self-improvement. On Thursday the $12 billion industrial buyout specialist announced a 69% drop in adjusted operating profit for 2020 after the pandemic revealed the cracks in its highly leveraged business model. Though net debt dropped 13% to 2.8 billion pounds it’s still a toppy 4 times last year’s EBITDA. A sale of Melrose’s air conditioning unit, which Chief Executive Simon Peckham confirmed is in the pipeline, would hasten a revamp. Assume it raises 2.5 billion pounds. Melrose’s other industrial businesses might be worth around 12 billion pounds, according to a Breakingviews calculation using Investec analysts’ operating profit forecasts for 2023 and peer multiples. Subtract debt and Melrose’s equity would be valued at 11.7 billion pounds, over a third higher than on Thursday morning. The disposal would also give Peckham more M&A ammo for his next target. That adds up to a welcome lick of paint. (By Christopher Thompson)