Mercury, or MerCruiser? One is an outboard, one is an inboard/outboard (I/O). If it's a Mercury outboard, I can't help. MerCruiser I/Os on the other hand, been there done that.
Ignition on an I/O is just like a car with one exception. I/O engines have a shift interrupter switch that kills the ignition for a split second while the transmission is shifting from neutral to forward or reverse. This switch is usually on the shift/throttle plate mounted on the starboard (right) side of the engine. They will get out of adjustment and can fail. If the usual culprits don't turn up anything I would check the shift interrupter switch. It is also pretty easy to hot wire a boat. A jumper from the battery to the coil will tell you if the problem is engine related or in the boat wiring. If you bypass the switch, don't forget the tie it back in. A rebuilt MerCruiser foot, where the transmission is, costs in the $1500+ range. You don't want to tear it up over a $20 switch.
Don't use car parts on a boat. Particularly the carburetor, distributor, starter and alternator. Automotive parts aren't sealed to prevent explosions like marine parts. They are a little more expensive, but then being blown up isn't cheap either.
DO NOT run it without supplying water to the foot either through ear muffs or by putting the boat in the water. It will wipe out the rubber water pump impeller in the foot. It is water lubricated. I would also consider changing the pump impeller also. After sitting for 10 years it is probably rather stiff. I usually put a kit in mine every other year. It's cheap insurance.
Another thing, most MerCruisers have a resettable circuit breaker on the engine as well. Check and make sure it is not tripped. It usually shuts down the starting control circuit as well, but maybe not in your case.
Added to remind you what your friend is getting into.
B.O.A.T.
Break Out Another Thousand.
Keep in mind, the best two days of a boat owners life are the day he gets it and the day he sells it.