Check the Chipset. If it's a 6x, no chance of Ivy. 7x should support Ivy, provided HP hasn't done any schenanigans in the BIOS.
Do not attempt to upgrade to a 45 W TDP chip, most motherboards will reject them (even if the chip has a cTDP of 35 W available)
HD4000 is not much better than HD3000. It will not run 3D games well (Even older titles)
The i7-3632QM processor may also be a quad core option (albiet with slightly slower graphics than the 3540M). I have installed this in my own Toshiba laptop (Originally a i3-3120M) with success.
Overall, I do not reccomend this upgrade unless the chip is literally free, in which case just try it.