Yeah, it's just a step beyond the world of bolt on modifications. Very little fits well with the 16V in a 240. 740ATL's post is a good high level view.
I ran a turbo 16V in my 240 for a number of years. The first iteration was a log manifold on the exhaust side, and an 8V intake on an adapter on the intake side. Since you're not wanting a turbo, the stock 16V exhaust manifold should fit well enough.
But the 16V intake won't. The 8V on the adapter wasn't a great solution either, because the 16V mounts the manifold outward and angled upward compared to the 8V. So it still required some fiddling around. And the round port to oval port at the adapter was problematic, I matched the shapes up with porting but it wasn't ideal.
There is barely enough room to fit a crab cab under the head where the 16V sticks out. I was using a Saab cap I think? Later on I converted to a newer MS box and ran Toyota coils and a DSM CAS where the distributor used to be.
You will probably want to, if not need to, carve some valve reliefs in the pistons. Some people seem to get by without it. Maybe test that theory out carefully on initial installation with some clay. For sure, it's interference, if the belt breaks the engine will suffer serious damage. But if it never gets out of time, then I guess the valves aren't open when the pistons are at TDC. I think Kenny found, after a long while of running his, that his valve reliefs were a bit too small for his valves (perhaps exhaust sized reliefs on the intake side?), but they'd never touched.
Probably a good idea to pair up a higher revving 16V build with a higher geared rear end and a lighter flywheel. That 16V is going to make that extra HP up higher in the RPM range.
And again, the alternative here is to spend money on a modified 8V head and a zippy 8V cam, keep it looking stock, and make similar HP. A stock 16V head certainly flows a lot better than a stock 8V head, but spend $$$$ on the 8V head and it closes the gap. And you'll spend a lot of $ and time and grief putting the 16V head in the 240. It's not a cheap thing to do.
16V version 2.0 - with a divided scroll front mount exhaust and a BW EFR turbo, and a custom intake manifold and coil-on-plug ignition: