so the nikasil motors from from 93' and older from what a mechanic told me. i had a 93 740i and it didn't have the nikasil chambers (had about 110k miles on it) and most times you can tell just by running a simple compression test.
the biggest problem you might have with that car is the valve body in the transmission...
sooner or later your car wont be able to shift into reverse, so you'll have to get someone to pop off the valve body from the bottom of the transmission and replace the ball inside it. from normal wear and tear, the ball in the valve body wears and and eventually gets stuck and wont shift the fluids correctly. the only time it would go into reverse for me is 2 seconds after i started it up...maybe from a surge from the transmission oil pump. strange eh? cost me about 1100$ to fix. The 7 also had the typical PCV valve issue from maintenance records that came with the car, but it wasn't a bad fix either. I'm no professional mechanic, but that transmission issue took over a month to find an answer for, its a tricky one. And still, im not sure if the 94' had those issues.
other than that, my 93' 740i was a very, very strong running car for the miles it had. everything worked seamlessly. congrats on the ride, its a classic in the works for sure.
lets see some pics! ill throw a few pics in of mine when i had it, sitting next to numark's 318i. good stuff, can't wait to see it.