Data rooms employ a variety of structures to determine their cost. Some data rooms charge per web page, while others charge based on the size of the storage. Others have a monthly flat cost. It is crucial that M&A professionals know the average VDR price for each pricing model in order to make an informed choice about the most suitable vendor to fit their budget and needs.
One of the more common methods for determining pricing is to base it on the number of documents that are stored in the data room. This is an excellent option for teams that don’t require the flexibility of size of the documents they upload. However, it might not work well for large collaborative projects.
Some companies also calculate the cost of an information room by counting the number of users who are administrative. This is a good option for teams that have fewer requirements for collaboration and sharing of documents but it could be expensive for projects that require more advanced tools, like security, visual analytics, and collaboration.
Other vendors use a flat monthly fee model which is perfect for long-term M&A transactions that can be a bit unpredictable in terms of timelines and are difficult to estimate. This pricing model could also be utilized by companies who would like to avoid the expense of scanning and uploading a huge quantity of physical documents. Another thing to think about with this model is whether the service provider offers customer support in the pricing. For instance, some companies provide support from a designated coordinator on weekends and during non-working office hours, which can be helpful when working with time-sensitive documents.
