The expanding VDR market makes the selection process ever more complicated. How can you be sure that you’ve made the right choice? Especially if two of your short-listed data rooms seem similar in their offering and service? Here are our top 4 hints on things you should be cautious of when choosing a vendor:
If it sounds too good to be true… it just might be. The cost of a VDR will depend on the deal, but if the characteristics of the rooms you’re looking at are pretty similar you should expect a similar price. If a vendor offers you a significantly lower price you should be cautious: this might indicate that the vendor will eliminate crucial factors of your service and offer very limited or no support.
Where is your data stored? The physical location of your data could tip the scale when you’re choosing between providers. If your business operates under GDPR, then it’s especially important that your data be stored in Europe.
Most VDR providers offer 24/7/365 service, but not all customer service teams are equal. You should instead ask what services are included, where they are situated and whether you’ll be talking to a dedicated account manager or being bumped around new people every time. During the course of a data room, project support is often required during the set-up, ongoing management and problem handling for all the external parties invited in. You should look for dedicated teams that touch base with you throughout your deal’s progress and can take any hassle off your plate.
A vendor’s reputation in the industry will help you distinguish a trustworthy provider. If you find that two VDRs have similar or identical features and prices you should choose based on their client feedback. Using former users and experts to guide your decision could help you to avoid unreliable providers. If a data room provider doesn’t have any reviews, this is a red flag and you should think twice before purchasing.