Data rooms employ several different models to determine their pricing. Some data rooms charge per page, whereas others charge based on the size of the storage. Others charge a flat monthly cost. It is vital that M&A professionals understand the average VDR cost for each pricing type to make educated choices about the most suitable vendor to fit their budget and needs.
One of the most commonly used methods to determine pricing is to base it on the amount of documents stored in the data room. This is a great option for teams that don’t require the flexibility of the size of files they can upload, but it doesn’t work well for projects that require a lot of collaboration.
Another way for some vendors to determine the cost of the data room is using the number of administrative users. This is a good option for teams with less requirements for collaboration and sharing documents however, it can be expensive for projects that require more advanced tools like security visualization analytics, collaboration, and security.
Other vendors use the flat-fee model for monthly billing. This is perfect for long-term M&A transactions that have an uncertain timeline that is difficult to estimate. This pricing model can also be utilized by companies who wish to avoid the expense of scanning and uploading a significant quantity of physical documents. This model also provides customer service. For example, some providers provide support via a dedicated coordinator on weekends and after office hours. This can be helpful when working with documents that require time.