What is a pay-to-cross structure?

A pay-to-cross structure is a financial arrangement where one party pays a fee to another party to facilitate a transaction or access a particular market, often in the context of Mergers and Acquisitions or private equity deals. This structure can be used to incentivize cooperation or expedite processes, allowing parties to bypass traditional barriers or competition. It may also serve to align interests between the parties involved, ensuring that both benefit from the transaction.