All of the disconnections to remove the engine can be done as a DIY project (preferably with a shop manual). I took my OMC engine out of my previous boat 3 time over the 18 years I had it.
That pricing does sound reasonable for engine rebuilding. I'm sure that doesn't include the manifolds, but in USA we can get the full set of manifolds and risers for a little over $600. If you want to increase your horsepower, the first thing to upgrade is the Camshaft. The second would be the Carburetor.
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"Knot Easy" 2000 Horizon 240 Volvo 5.7GS /SX
tow: 2017 Honda PILOT EXL-AWD
prev. boats:
'87 Chaparral 198CXL 4.3 OMC Cobra
'69 Jetstar 16ft Ski Boat, 115hp Yamaha
'68 Aluminum Jon Boat, 3hp Sears
'64 Water Wings