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Key takeaways
- Look at the technology on offer and what you need for your project
- Ask about the support team and their service
- Beware of red flags
Choosing a virtual data room provider has never been a uniform process. Researching the best one can be a mammoth task, that’s why we’ve put together this top-tip list of what you should be looking at when you’re comparing VDR providers.
- Experience
How much experience does the VDR provider have? Is that information easily found on their website? If no, this could be a red flag. If it’s difficult to find information on a VDR provider this could be an indication that they’re not as experienced as their competitors.
Why is this important? Experience level directly impacts the quality of service. Lack of experience and client base could mean they don’t have the understanding of the heavily compliant environment you are working in. - Positive Customer Reviews
You should be interested in the companies that have used the VDR provider beforehand. These companies may have given positive testimonials after they closed their data room.
Why is this important? Reading through these reviews will give you an idea of what the VDR provider is best at and what companies are loyal to their service. It will also reveal a potential flaw in their service if they’re lacking positive reviews. - Customer Service
Every provider claims to have 24/7/365 service, but the level of that service varies. It’s important that you look into how providers deliver support. Specifically, if they offer training and problem solving solutions only or if they offer an all-inclusive service.
Why is this important? An all-inclusive service means you’ll have a dedicated extension of the deal team that will undertake all administration tasks for you. - Technology
Some of the key features you should look for in a VDR platform are:
Document protection
Bulk document upload
Full text searching against all file types (including scanned images)
Auto-indexing and re-indexing
Redaction
Real-time reporting
Q&A module
Why is this important? Investigating the vital technology on offer will be the difference between spending hours or minutes on a task. If a data room provider can’t offer any of these features, then it’s likely that you’re looking at the wrong solution for your business. - Red Flags
There are certain, sometimes overlooked signifiers in a company’s service that means you might find yourself disappointed by a data room and its functionality. These are:
Lack of added features
If lacking valuable tools like Redaction, e-mail upload or a buyer management system, it could become a problem in your process.
Cheap price
The cost of a VDR depends on your business needs. However, if the characteristics of a room are more or less identical you should expect a similar price. If a price is significantly lower you should be cautious, because this can mean the provider may have cut a crucial feature to reduce the cost of their service.
No free trial
Before you purchase any kind of service, you should ensure that its convenient for you, your company and your team. A VDR provider shouldn’t deprive you of the chance to test the product, and could suggest that the VDR doesn’t meet all the promises given.