If you’re considering utilising a virtual data room for your next Merger & Acquisition or venture capital transaction, there are many factors to consider when choosing a vendor. How secure are they? Is it easy to use? How good is the service? As well as all of the usability concerns however, there will always be one crucial factor - price.
There are a number of factors to take into account when comparing different virtual data room pricing plans, and you need to find the solution that best meets your requirements, as well one that provides you with value for money.
What should you be looking for when comparing virtual data room pricing?
Cost per-page or per-megabyte?
The first thing to consider is whether the service charges by the page or by the megabyte. If your documentation is mostly plain text - e.g. spreadsheets and written reports - a service that charges per MB may be best. However if the documentation is heavy on graphics and/or images, such as patent schematics, you may want to consider a plan that charges per page.
Look closely at what is offered in a standard package as some providers advertise features and benefits only to subsequently reveal hidden fees in the small print. A prime example of this is overtime and weekend access; during the due diligence process it is common to need access to documentation outside of normal office hours.
Who is responsible for uploading documents?
Does your virtual data room pricing plan include uploading by the service provider or will the onus be on you and your staff to do this? Deciding who takes responsibility will depend on your budget and your individual situation. Some providers offer documentation uploading as part of their service, while others will charge an additional fee on top of your data room pricing plan.
How many people will have access to documentation?
It is crucial that everyone who needs access to documentation has it, so you need to ensure that you have control over who can access which documents and understand how this affects your pricing. For example, will you be charged on a per user basis, or will you have unlimited user access? If the number of people that need to access documentation is relatively small and unlikely to change, a per person charge may be your best option. However if a large staff will be working on the project, or you are unsure of exactly how many people will eventually need access, you may want to choose a service that offers unlimited access.
Of course, it doesn’t all come down to price and there will be many other considerations when comparing virtual data room providers. But when you are looking at value rather than simply price,, these wider considerations come into play and help you to get the right deal for your unique requirements.