The wealth effects of mergers on acquirer and target firm shareholders are of interest to a broad
body of academics and practitioners from different fields. Academics are typically interested in
the mechanics of takeover markets, which includes the division of merger-driven wealth between
the merging firms. Mergers and acquisitions (M&A) advisors estimate the wealth effects of past
mergers, especially on the target firm shareholders, to assess whether their clients are receiving
fair premiums from the proposed transactions