When You Should NOT Use Intralinks

datarooms

Summary

Intralinks dominates enterprise M&A, but for many deals, it's overkill. Here's an honest assessment of when Intralinks makes sense—and when you should look elsewhere.

Intralinks has been the gold standard for enterprise virtual data rooms for over two decades. Banks, law firms, and Fortune 500 companies trust it for their most sensitive transactions.

But here's what the marketing won't tell you: Intralinks isn't the right choice for every deal.

After analyzing hundreds of transactions, I've identified clear patterns for when Intralinks makes sense—and when you're better off with alternatives. This isn't about whether Intralinks is a good product (it is). It's about whether it's the right product for your specific situation.

When Intralinks IS the Right Choice

Let's start with the positive. Intralinks genuinely excels in specific scenarios:

Large-Cap M&A ($500M+)

For billion-dollar transactions, Intralinks is battle-tested. The platform has handled some of the largest deals in history, and that track record matters when:

  • Your buyer's legal team needs to demonstrate due diligence to their board
  • Multiple law firms need coordinated access
  • Regulatory scrutiny requires comprehensive audit trails
  • The deal involves public company disclosure requirements

Institutional Buyer Requirements

Some PE firms and strategic acquirers specify Intralinks (or Datasite) as a requirement. They've standardized on these platforms, trained their teams, and integrated them into workflows. Fighting this requirement rarely makes sense—the cost of the VDR is noise on a large transaction.

Complex Cross-Border Transactions

Intralinks has data centers worldwide, 24/7 support in multiple languages, and decades of experience with international regulatory requirements. For deals spanning multiple jurisdictions with different data protection laws, this infrastructure matters.

Financial Services M&A

Banks, insurance companies, and other regulated financial institutions often have procurement policies that effectively require enterprise VDRs. Intralinks' compliance certifications and security posture satisfy these requirements.

When You Should NOT Use Intralinks

Now for the honest part. Here are situations where Intralinks is likely the wrong choice:

1. Startup Fundraising

The Reality: Raising a seed or Series A round? Intralinks is massive overkill.

  • You're sharing 50-100 documents with 20-50 investors
  • You don't need Q&A workflows or complex permissions
  • VCs don't care what platform you use—they care about access
  • The cost could represent a significant portion of your legal budget

Better Option: Papermark, DocSend, or similar founder-friendly tools that cost $0-100/month instead of $10,000+.

2. Lower Middle Market Deals ($10M-$100M)

The Reality: For smaller transactions, enterprise VDR costs eat into deal economics disproportionately.

  • A $15,000 VDR cost on a $20M deal is 0.075% of transaction value
  • The same cost on a $500M deal is 0.003%—barely noticeable
  • Smaller deals often have simpler structures that don't need enterprise features

Better Option: iDeals, Ansarada, or Papermark offer professional-grade features at price points that make sense for the deal size.

3. Simple Asset Sales

The Reality: Not every transaction is a complex carve-out. Selling a small business or portfolio company with straightforward documentation doesn't require enterprise infrastructure.

  • Limited buyer pool (often single buyer)
  • Relatively simple document set
  • Quick timeline
  • No regulatory complexity

Better Option: Any modern VDR with basic security and tracking. The simplicity of modern platforms may actually improve the buyer experience.

4. Internal Document Sharing

The Reality: Some companies consider Intralinks for board portals or internal sensitive document management. This is using a sledgehammer to hang a picture.

  • Internal use cases don't need buyer/seller permission models
  • The compliance features are designed for deal scenarios
  • The UX is optimized for due diligence, not ongoing collaboration

Better Option: Board portal software, secure collaboration tools, or self-hosted document management systems.

5. When You Value Modern UX

The Reality: Intralinks has been around since 1996. While they've modernized, the platform reflects its enterprise heritage—comprehensive but complex.

  • Learning curve for new users
  • Interface designed for power users
  • Mobile experience is functional but not native-feeling

Better Option: If your deal team or counterparties value modern, intuitive interfaces, newer platforms like Papermark or Dealroom offer significantly better user experiences.

6. When Budget Constraints Are Real

The Reality: Intralinks pricing is opaque and negotiation-dependent, but it's not cheap. If you're watching every dollar:

  • Minimum commitments may exceed your needs
  • Per-page and overage charges add up
  • Annual contracts lock you in regardless of deal timeline

Better Option: Platforms with transparent, predictable pricing. Papermark offers unlimited documents from $79/month with no per-page charges.

The Decision Framework

Ask yourself these questions:

Does the buyer/seller require Intralinks specifically?

Yes → Use Intralinks. Don't fight procurement requirements. No → Continue evaluating.

Is this a large-cap transaction ($500M+)?

Yes → Intralinks is a safe, defensible choice. No → Consider whether enterprise features are necessary.

Do you need complex Q&A workflows with multiple expert groups?

Yes → Enterprise platforms excel here. No → Modern alternatives handle basic Q&A fine.

Is this a cross-border deal with multiple jurisdictions?

Yes → Evaluate Intralinks' global infrastructure vs. alternatives. No → Geographic complexity isn't a factor.

Is minimizing cost a priority?

Yes → Intralinks is probably not your answer. No → Consider Intralinks alongside alternatives.

Alternatives to Consider

Depending on your scenario, these alternatives may be better fits:

Alternative Best For Price Range
Papermark Startups, SMB deals, cost-conscious $0-79/month
iDeals Mid-market M&A, European deals Contact for pricing
Ansarada AI-assisted diligence, process automation Contact for pricing
Datasite Large M&A (Intralinks' main competitor) Contact for pricing
Dealroom Mid-market, modern UX priority £1,200+/month

Making the Switch

If you've been defaulting to Intralinks and realize an alternative makes more sense:

  1. Start with your next deal, not mid-transaction
  2. Get buy-in from legal counsel—they may have valid concerns or helpful suggestions
  3. Run a pilot on a smaller transaction to build confidence
  4. Document the experience for future reference

The Bottom Line

Intralinks is an excellent enterprise VDR that's genuinely the best choice for certain transactions. But "enterprise" doesn't mean "best for everyone."

For startups, lower middle market deals, simple transactions, and cost-conscious buyers, modern alternatives offer the same security and professionalism at a fraction of the cost and complexity.

Choose the right tool for your specific job, not the tool with the biggest brand.


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