That sounds like a price for a repair with original Volvo parts (i.e. an entirely new manicooler - priced around 3200 EUR inc. tax from Volvo dealers). There are other options, including finding a
used one or finding a skilled TIG welder to repair it. Someone has done this procedure and documented it with lots of photos for a Volvo MD22 engine (the predecessor of the D2-55 on Bavarias), which while being a different engine design has a similar manicooler:
http://www.diecyde.com/index.php?page=volvo-penta-md22-overhaulIf those options aren't for you, I'd seriously consider a new engine for the reason you've already mentioned, especially if it had a hard life (likely if it was chartered, where they're often run for power generation). Another consideration is how soon you want to continue sailing again!
If you do go for getting it repaired, have it thoroughly inspected and sort out whatever is found. The exhaust elbow usually goes first (a mix of blockage, corrosion and weakened metal), although after this time it may already have been replaced once or twice. Coolant hoses can get porous, and make sure the leaking manicooler did not let get a lot of seawater in the coolant channels, which can lead to corrosion or blockage (if you have lots of crumbly bits settling in the bottom of the old coolant upon draining it, that's a bad sign). If it eats oil or smokes heavily, consider a full rebuild, but that only makes sense if you can find an experienced engineer who doesn't charge the usual marine rates, else you're quickly in the price realm of a new engine.
Good luck!