Grady-white-transom-repair -
Chisel out the rotten wood. On older Gradys, this often turns into "mud".
Use a plastic mallet to tap across the transom. A sharp "ping" is good; a dull, hollow "thud" indicates delamination or wet wood. grady-white-transom-repair
Coosa Bluewater is a fiberglass-reinforced foam that is 100% rot-proof. Cons: Significantly more expensive than wood. Chisel out the rotten wood