A virtual dataroom (VDR) can be used to share documents with external collaborators. These online repositories help facilitate the entire due diligence process by allowing all parties to work together on projects from any location. However, VDR providers differ significantly and it is essential to look at each option carefully to select the ideal solution for your needs. This article explains how you can do a comparison of data rooms and offers tips for choosing the best service to meet your needs.

Some providers charge per project This is the simplest alternative if you wish to share materials for the course of a short time. However, this model may not be appropriate for more extensive projects that involve multiple stakeholders or extensive collaborations. In these cases you might choose a provider who offers a pricing plan that is based on the amount of pages or storage. If you opt for this type of plan you will also need to figure out how much storage capacity you need. Overage costs are costly and you should consider purchasing an option that will accommodate your anticipated needs.

Other providers charge per user, which is a common billing model for M&A transactions. However, this model can be problematic if you need to invite a large number of people, such as potential bidders, bankers, attorneys and auditors. They may require desktop software or plugins to access the VDR. This could slow down the workflow.

Some providers offer unlimited storage and users with an annual fee. This is an excellent option for a majority of organizations. However, you must consider the pros and cons of each model to determine which is the most suitable for your organization. It is crucial to evaluate the security features offered by each vendor if you are considering an option with a fixed rate. For example, some vendors require the use of third-party software to enable advanced security features, such as watermarking and two-factor authentication.