How to Choose a Virtual Data Room in Canada
Sep 07, 2022
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The Canadian M&A market is amongst the world's biggest M&A landscapes. The overall M&A volume in Canada was $96.2 billion and $93.8 billion in the 1st and 2nd quarters, respectively. That is why Canada stands amongst the biggest users of virtual data rooms. Canadian companies increasingly integrate this high-end data room software into their business processes, to facilitate secure data sharing and deal making.There are hundreds of data room services available in Canada right now, but all of them differ in technical capabilities, quality of support, and pricing. To guide you towards making the right choice, we’ve gathered some important tips to consider when selecting an electronic data room in Canada.
Things to consider when selecting data room software
1. Data room security
As medium-to-large-scale companies in Canada mostly use virtual data room solutions for M&As, data room security must be the first thing to consider. Start your research by looking for certified virtual data room providers in the area.
Data room vendors are obligated to comply with general cyber security standards, including ISO 27081, ISO 27017, and ISO 27001. Apart from that, vendors also need to comply with local or state-level regulatory requirements. Make sure they are complying with Canadian cybersecurity standards and other legal requirements.
Whether the data room is for M&As or other purposes, make sure it has the following security features:
- Two-step verification. It is necessary to prevent unauthorized logins.
- Document access control. It helps businesses to control the flow of data in the data room.
- Auditing and reporting. Audit trails are mandatory, especially if the data room is being used for M&As, because audit logs help gauge buyer’s interests and oversee all data room activities.
- Customizable NDAs. It is better to have built-in NDA templates to prevent data leaks and misuse of confidential documents.
- Digital watermarks. They are useful in tracking changes in documents and preventing copyright issues.
2. Operating system compatibility
You need a virtual data room that not only supports your business's operating system but also gives a chance to your employees to log in from their personal devices. Look for the data room vendors that support commonly used operating systems like Android, iOS, Linux, Mac, Windows, etc.
If you want to facilitate your investors and employees in better ways, search for those service providers that allow mobile app access.
3. Industry experience and online customer reviews
It is always better to go for an experienced service provider who has ample industry experience. Experienced data room providers know how to understand the needs of different customers and what type of solutions would work best for them. Also, hiring data room services with experience in a particular industry is a plus, as they know the specifics of working in a certain business sector.
Another important thing to do is to read online customer reviews from trusted sources like Domain.com, G2, TrustRadius, Capterra, and Software Advice. Customer reviews are a great source to learn about the strengths and weaknesses of a vendor.
4. Data room comparison
A thorough virtual data room comparison is a mandatory part of the process. There are many well-reputed data rooms in Canada, but they have different pricing plans, features, and expertise.
While you compare virtual data rooms, don't forget to talk to their customer support and see how good they are — you will need them in the future.
Top virtual data room providers in Canada
To simplify your data room selection process, here is a brief intro to some of the best data rooms in Canada.
1. iDeals data room
Founded in 2008 and headquartered in London, iDeals stands as the industry leader with the most intuitive user interface and simply unparalleled data security level. iDeals is a trustworthy option for simple data management, M&As, litigation, fundraising, investment banking, etc.
2. Merrill Datasite
Operating in almost 170 countries, Merrill is a top-class virtual data room for due diligence in mergers, acquisitions, fundraising, initial public offerings, etc. However, it is important to note that Merrill is only an enterprise-level data room solution.
3. Firmex data room
Founded in 2006, Firmex is a high-end Canadian virtual data room service provider serving 140 countries. The company has already helped almost 140,000 companies, organizations, and other types of business entities. Firmex is known for the best quality solutions for government organizations, real estate companies, law firms, and investment banks.
| Other notable vendors in Canada include OneHub, Citrix, DFIN, Box, DocSend, and Ansarada. For more information on the best names in the industry, you can also visit https://data-room.ca/. The website conducts in-depth data room reviews and comparisons to spot the best VDR solutions in Canada. |
Final words
Canada is one of the biggest consumers of virtual data room software, and due to high demand, the data room market in the country is growing day by day. However, thorough research and detailed data room comparison are mandatory before selecting the right vendor for your business. Hopefully, the tips mentioned above will be handy and guide you towards the right solution.