When it comes to selecting a virtual data room there are a variety of factors to take into consideration. One of the most important ones is the cost. We’ve heard horror stories about M&A professionals being slapped by large amounts because data room providers are charging overage fees. As VDR technology advances it’s imperative that the industry take a closer understanding of the way pricing structures impact the quality of the service.
Some VDR providers charge based on the number of required pages. This can be cost effective if you know the exact extent of your project prior to. This is not a viable option if you plan to exceed the estimated limit of pages.
Other providers charge a monthly flat fee to access the platform, which eliminates the possibility of overages and is more efficient. This type of pricing model is becoming increasingly common, as many vendors offer this type of plan along with various other flexible plans that are designed to accommodate different usage scenarios and budgets.
Furthermore, certain VDRs come with features that can provide additional value and help speed up the deal process such as customizable interactive reports and color-coded document activity graphs, which can reduce the time needed to make decisions and review the documents. These features might not be required for every deal, but they can enhance the effectiveness of an M&A deal. It is important to consider the pricing structure of the VDR and determine what features will best suit your requirements.