Nick,
I have since moved OMC… J&E’s but my first love were Mercs (9.8, 20, 50, 45 ) from the early 60s to late 80s and that engine sounds like great project…if the innards are ok.
Have you done some basic checks before investing big $$$ (if it is a concern budget wise) . Basic checks like compression, some wiring needs to be redone but that is not a big deal, the antique ” finned selenium rectifer can be replaced with a 3$ 25 amp full-wave rectifier from Amazon. better yet a voltage rectifier/regulator ! A small endoscope (cheap) can allow you to peek inside
I have never openned up an engine to clear up rings, pistons, redo rebores etc…) I have limited my repairs to externals only like carb jobs, GC oil, magnetos, coils etc….
Mercs can be strange beast sometimes needing more than basic tool$
Joining AOMCI has priviledges 🙂