If you are deciding on a Data Room vendor choose a company that has a robust software platform that is simple to use. A user interface that is easy for CFOs and accounting professionals at the entry level is a huge benefit, as will customizing options such as logos and color scheme. Some vendors also provide additional services that aid in due diligence, like training and consulting. These are beneficial, particularly for businesses of a smaller or medium size.
A lot of vendors offer a free trial that lasts anywhere from one week to a month. This trial is a great chance to test the software and find out how it performs against competing options. During the trial you can run mock processes, such as checking documents against a due diligence check list. This will allow you to assess the efficiency of each platform and determine if it can add value to your business.
There are several pricing options for data rooms, including per-page, per storage, and per-user. Each has its own benefits and drawbacks. Make sure to take a close look at every option before settling on one that is within your budget. It’s also important to understand the features you require and which are optional. If you intend to make use of your VDR as part of M&A due diligence, it could be worthwhile to include a current captable. This will provide potential investors with an understanding of how your company is funded, the options for future hiring, and also how the founder equity is divided between existing investors.
