I agree with the engine being "adequate" thoughts. Depending on how you are using the boat it might be just fine, though.
Those cracks worry me. There's obviosuly been water, at some point anyway, coming through that hole (transducer cable?). There's no question on that. While coming THROUGH to the inside is no big deal, the fact that it is most likely soaking into the wood in the transom is a BIG deal. Combined with those cracks, my gut would tell me it's got a soft transom. The cracks look, to me, like expansion cracks - the wood has swelled from the moisture... or if in a cold climate, frozen. It's all fixable - but if you don't know much about this, you'll definitely want a survey... which can be used in negotiations, as well. As a ballpark number, I would easily budget $5K for the transom repair - which could be a discount on the price, too. But if you want to move forward, and the seller is open to it, get a couple estimates.