How does the disbursement of money work for people who sell their companies?

The only people entitled to any money are people who own stock in the company, or if they have some sort of other ownership stake in it. If the founder has never sold or handed out any stock or ownership percentage to others, all the money goes to them. Otherwise, it's split up among the owners depending on how much of the company they own.

Do those other folks own shares of the company?
If not, maybe they get a firm handshake, but that's all their entitled to.

Owner owns it. Employees get a weekly pay cheque
.. shareholders on the other hand.. %

Owners get the retained earnings once assets have been sold. Owners in corporations are the stockholders. CEO usually has a shit ton of stock. If they were a sole proprietor then they get it all after expenses..

Those who own shares are paid for their portion if they choose or they can maintain a share of the company under new ownership.

The company is the equity. Check your stock agreement.