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I just bought a new project boat a 88 16 foot espirit it has the original 125xt force it also has a auxiliary Jack plate. It appears to have been on there for some time. But I have some concern about the mounting of it. I would like to keep it as one of the lakes I fish has a 20hp limit. Wanted to get some opinions if I should leave it as is or add bracing some how.
The transoms are real thick pylwood on the older boats. I would think but am no expert that what you have is good for a 20 HP motor. If you wanted to make it stronger, put a piece of stainless steel between the bolts. The angle iron looks to be the weak link.
As said, untreated iron + boats are never a good combo. Where it's bolted through the top cap, there is no "transom" or additional support beyond the normal fiberglass laminate: while it's only a kicker motor (not a lot of torque or engine weight stress), there is still risk of stressing and cracking the glass, especially when the kicker is stowed and you're running with the big motor - that kicker is going to get bounced around! I'd say pull the kicker off the mount, and only install it when you need to use it.
If you're going to keep the mount, for sure pull the mounting bolts and seal all the holes with 3M 4200 sealant. Hopefully the lowers were sealed originally and the transom isn't rotten from water intrusion into the laminate.
While it's off, consider stripping it to bare metal and prime/painting or powder coating it so it doesn't rust.