There are numerous different types of structures used by data rooms to determine their pricing. Some are priced per page as well as others dependent on the size of storage. Some charge a flat rate per month. It is important for M&A professionals to understand the average VDR price for each pricing method to make informed choices regarding the best vendor to suit their requirements and budget.
One of the more common methods to determine pricing is to base it on the number of documents that are stored in the data room. This is a good solution for online data storage as a tool for business expansion teams that don’t require much flexibility in the size of files they can upload, but it doesn’t work for projects that require extensive collaboration.
Some vendors also calculate the price of a data room by taking into account the number administrative users. This method is suitable for teams that have fewer requirements for collaboration and sharing of documents however it is costly for projects that require more sophisticated tools, such as security and visual analytics as well as collaboration.
Other vendors utilize a flat-fee, monthly model. This is ideal for long-term M&A transactions that have a variable timeline that are difficult to estimate. This model of pricing can be utilized by companies that want to avoid the cost of scanning and uploading a large amount of physical documents. This model also includes customer service. Certain providers, for example offer support from an assigned coordinator on weekends and after hours. This can be helpful when working with documents that require a lot of time.