Who typically finances an employee ownership sale?

Employee ownership sales are typically financed by a combination of the following options: 

1. External lenders: Banks and other financial institutions are common sources of funding, especially for larger companies. Some specialize in EO transactions;
2. Seller financing: The company owner may agree to be paid over time from future company profits;
3. Employee contributions: In most worker co-op EO sales the employees will put up some equity in the form of a buy-in though this will almost always be nominal (minority) in the capital stack, and employees do not put up funds typically in ESOP or EOT sales.