Re: electronic ignition?
Most of those older CDI conversion units still used the original cap and rotor. They provided a CDI function by lowering the voltage across the points, simulating an SCR (switch) and providing a high voltage (300V) to the ign coil. This changed the plug voltage from 20K volts to 300KV (or so). Some needed special ign coils to deliver that kind of voltage.
if you want to replace the cap and rotor, I would think you will need some exotic set up with multiple ign systems, one for each cylinder. Your motor is 4 cylinders? Merc does it on the modern motors with trigger coils and magnets on the flywheels. Merc 500s as well as other Merc inline 4 cylinder motors have been around forever. Maybe you can adapt a flywheel and trigger coils from a mid 70s Merc 500. If you can make that happen, the rest of the ADI ignition will be easier.