Virtual data rooms play a crucial role in securely managing key business processes like M&A due diligence, bidding and restructuring, bankruptcy and contract negotiations. However, the sheer number of VDR providers in the current marketplace has led to a variety of different pricing models — some as straightforward as a buffet, and others more complex than a cordon bleu menu. This inconsistency makes comparing price of the cost of a VDR against its rivals nearly impossible. To make matters even worse the majority of VDRs hide their pricing information in a tangled set of terms and conditions or even offer hidden charges.
Investment bankers and advisors, who require a virtual dataroom, frequently overpay for services that do not fit their needs or budget. To avoid this pitfall it is crucial to carefully evaluate each provider’s offerings and decide what features will meet the company’s specific needs and goals.
It is also advisable to read through the reviews of each service. However, it is important to keep in mind that some review sites are fake and companies are able to purchase reviews. It is essential to look up “Provider name + Reviews” and be attentive to every review.