From reading the report, I didn't think that he made 120k $ debt just to make the sale; rather he financed his second startup with credit card debt, and used some of the AR sale to pay back the debt.
What are you implying? He said in the post he paid off most of his creditors after closing. If the final price was $215k it certainly seems possible to pay off most of $120k with that.
A business like AR with $60k in profit sold for $215k seems like a pretty good deal for the seller.
On a yield basis, that seems like a great deal, but given the work involved (+ chance of the business being disrupted), I'm not sure I like that profit to price paid ratio. It certainly isn't a price I would have paid.
Oh. He perhaps he should clarify, as that's how I read it as well (I'm sympathetic to Patrick, so I wasn't reading that with a skeptical eye). He wrote something about taking equity out of AR to put into Starfighter, using credit card debt.