The cost for virtual data rooms can differ significantly based on the provider and the package they offer as well as the features they offer. Some charge per page while others charge per user or per project. Others charge a flat fee per month. It is crucial to carefully take note of your requirements and determine the features you require to complete the task. We’ve been through horror stories of M&A professionals who eat huge invoices due to overage charges and extended timelines, so it is important to choose a vendor that offers an equitable and fair pricing structure.
The most common use case for the use of a VDR is due diligence during the course of a financial transaction, when the sell-side and the buy-side need to review a large amount of documentation. For this, a digital data room with robust features is ideal. Some providers, for instance, offer infinite scrolling which can reduce the amount of clicks required to browse a folder or document. This can be a significant time-saver for teams. Other features to look for include security with granularity, which allows users to access only the documents they require and limit access to specific file types. A quality VDR allows you to mark folders and files as favorites. This can speed up your review because you will be able to quickly return to documents that are of interest.
It is important to consider the number of users and storage capacity you’ll need to complete your project when looking at VDR pricing. In this case it is recommended to choose a month-to-month plan is generally the best choice as you can scale your usage up or down easily depending on the project. However, if expecting to frequently use the data room and require a secure repository for relevant documentation and other documents, then an annual plan could be a better choice.