It goes without saying that a virtual data room compared to a generic document sharing platform makes any company look that much more professional, especially when dealing with banks and financial institutions. They prevent the risk of being blocked by corporate fire walls as well as provide a higher level security for sensitive information that you don’t want in the wrong hands.
While the initial step of finding the right VDR provider for you can seem complicated, first determining whether your venture is for a limited time or may require multiple projects will help in weeding out providers that don’t offer the option for one-time data room use or annual subscriptions. Flexibility is key when you do decide to move forward with a provider, so looking into some reviews of data rooms (link) will aid in your final decision.
As a business owner, you’ve finally decided to sell your company. You want it to be quick and easy, swift and painless – a transaction is probably the better option in this case. Seeing as this is a deal with an eventual conclusion, an annual subscription isn’t necessary for a process that will only take place once. However, a platform safe enough to house substantially larger and longer projects would still be a great option for a transaction of lower caliber.
Furthermore, the flexibility of changing your mind midway through can make one provider more suitable for a company than the other. It is also important to keep in mind the fee a company claims to charge for a single-use data room; is it a fixed price or will there be hidden charges along the way? After an initial set up (that should only take a few hours) and a learning curve assisted by efficient customer service, a company should feel confident enough to then consider potentially moving into a subscription if they find their business dealings may require it.
Subscriptions to a virtual data room are a more viable option for consulting firms or legal firms with multiple partners and deals. When either of these two parties open a room, the ability to then create multiple projects is a key factor in determining the value a virtual data room will offer in comparison to the cost a provider is charging. A few factors to keep in mind when optioning a subscription is whether the provider offers a fixed fee, the amount of projects and users the allow once the data room is open, and what kind of accessibility options there are for various permission levels.
Finding a provider that not only offers a subscription, but high grade security, and customizable tools within the VDR can affect the relationship firms have with their clients and how professional they look to the financial institutions they are dealing with. Nurturing these good relations with a data room that ensures no document leakage and at reasonable price during the subscription also reassures your partners that you’ve chosen the right platform to help you close your deal.