Re: transum leak merc
It's probably transom rot that cause it to flex enough to cause the leak,,, but you are not going to know unless you get into it. Drill some exploratory holes in the transom, low, inside the boat, close to the lower bolts, to see if there is rot. Dry yellow shavings = good, black moist shavings = bad. Seal the holes up with 3m5200. If smacking the pavement broke the lower gimble housing bolts this could cause the leak. Those bolts are a special alloy and pretty weak for their size, prone to corroding/rotting the bolt on older boats, especially in the presence of wet (rotten) wood . If the bolts were corroded to 1/2 their diameter, the smack on the pavement could have snapped them. I couldn't see the bolt (or should I say anode) in the pic, not sure if it's the poor pic or it's gone. The bolts have a screw-on anode on the end. The anode is about 1.5" in diameter with a rounded end, located next to the trim hose manifold on the gimble housing.
On my 73 Mercruiser with a rotten transom, 1 of those bolts was rotted clear through, with corrosion and gunk holding it in. The other easily snapped in 1/2 when I was trying to remove the nut. I removed 1/2 the bolt with the nut still attached from the inside of the boat, the other 1/2 of the bolt from the outside of the boat... The 73 also used a foam gasket between the gimble housing and transom that had long ago dried up, shrunk and lost it's sealing ability. it was "barely" covering/sealing anything by the trim manifold. (I'm not sure if they used the same foam gasket in 78, but.......... The gasket is cork/rubber now.)
The repair is going to be a real PITA as the drive needs to come off, engine out, transom shield (plate) and gimble housing off, replace gimble housing gasket and put everything back together. Could do it in a weekend
IF the transom isn't rotten... (kind of doubtful.........................)