There are a variety of types of structures used by data rooms to determine their pricing. Some data rooms charge per web page, while others charge according to the size of the storage. Some charge a flat amount per month. It is important that M&A professionals understand the average VDR cost for every pricing type to make an informed choice about the best vendor for their budget and requirements.
The amount of documents stored in the dataroom is a popular way to determine pricing. This is a great option for teams that don’t require a lot of flexibility with the size of files they can upload, but it doesn’t fit well with projects that require extensive collaboration.
Some companies also determine the cost of a data room by counting the number of users who are administrative. This is a great method for teams with limited requirements for document sharing and collaboration, but it can be costly for projects that require more advanced tools such as security as well as visual analytics and collaboration.
Other vendors utilize an annual flat-fee model. This is ideal for long-term M&A transactions that have an uncertain timeline that is difficult to estimate. This model of pricing can be utilized by companies who wish to avoid the expense of scanning and uploading a huge amount of physical documents. This model also provides customer service. Certain providers, for instance, offer support by a designated coordinator on weekends and after office hours. This is a great option when working with documents that require a lot of time.