Data rooms use a variety of models to determine their cost. Some are per-page priced and some are determined by the size of storage. Others use a flat monthly fee. It is essential for M&A professionals to know the average VDR cost for each pricing model to make an informed choice on the most suitable vendor for their needs and budget.
One of the more common methods to determine pricing is to base it on the quantity of documents that are stored in the data room. This is a great option for teams that don’t need a lot flexibility in the file sizes that they can upload. However, it will not work well for large collaborative projects.
Some companies also determine the cost of a data room by taking into account the number of administrators. This is a good method for teams with limited requirements for collaboration and sharing documents, but it can be costly for projects that require more advanced tools like security, visual analytics and collaboration.
Some vendors have a flat monthly fee model, which is ideal for lengthy M&A transactions that be a bit unpredictable in terms of timeline and are difficult to estimate. This pricing model is also beneficial for companies looking to avoid the costs of scanning and uploading large amounts of physical documents. Another aspect to consider when using this model is whether the provider includes customer service in its pricing. For instance, some companies provide support via a dedicated coordinator on weekends and after office hours, which can be helpful when working with documents that require time.