Data Room Price Comparison For M&A Transactions
Data rooms use various structures to determine their pricing. Some are per-page priced and others are dependent on the size of the storage. Others use a flat monthly fee. It is essential that M&A professionals understand the average VDR price for every pricing type to make an informed choice about the best vendor for their budget and requirements.
One of the most commonly used methods to determine pricing is to base it on the quantity of documents stored in the data room. This is a good option for teams that don’t need a lot of flexibility with the sizes of files they are able to upload, but it won’t work well for projects that require extensive collaboration.
Some vendors determine the cost of a data room by taking into account the number administrative users. This method is suitable for teams that have limited requirements for collaboration and sharing of documents, but is costly for projects that simplify secure document collaboration with data rooms require more sophisticated tools, such as security, visual analytics, and collaboration.
Other vendors employ a flat monthly fee, which is perfect for long-term M&A transactions that have a varying timeframes and are difficult estimate. This pricing model is ideal for businesses that wish to save the cost of scanning and uploading large numbers of physical documents. This model also includes the customer service. For instance, some suppliers provide support from a designated coordinator on weekends or outside of office hours, which can be useful when working with time-sensitive documents.