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The lead dancers, in the couple standing in front, on the end, turn inward toward each other and go past each other, as if they were doing a Partner Trade. The trailing dancers just follow them, also turning around but staying behind the lead dancers. Everybody then walks forward, passing right shoulders as necessary, until they are in parallel waves.
Note that the dancers who started as leaders end as leaders, and the dancers who started as trailers end as trailers. This is because the trailers stayed right behind the leaders the whole way.
Note also that because dancers are passing right shoulders with the dancers coming from the other direction, the result is always right-hand waves.