Hans Lidforss, global head of mergers and acquisitions and VP of strategy and corporate development for Hewlett-Packard (HP), says the current initial public offering (IPO) environment is difficult, but makes it easier to begin dialog with venture-back startups and to complete them. HP has acquired more companies because valuations are rational, and large companies can get a return on investment (ROI), says Douglas Kehring of Oracle. Most startups are profitable earlier in their lives than in the past, which gives them and their VC backers the choice of walking away from very low corporate takeover offers. Other types of financing are also available from private equity firms that are now assessing technologies. The tough-mindedness of corporate acquirers also allows VC investors to get higher returns from trade sales due to the auction-like competition that can arise. The result is that there is a much more varied marketplace for high technology startups, and dealmakers of all types are getting more experience and completing more complicated relationships with each other. Among topics covered are the statistics of the mergers and acquisitions (M&A) and IP markets in 2005 in the U.S. and Europe, companies that have acquired many companies recently, evaluating the risks and rewards, which startups are being acquired and why, valuations that are more in line with revenue multiples, and alternatives to corporate takeovers that will be available until the initial public offering (IPO) market revives.