Of Michael Porter's three tests of whether a proposed diversification will create value, the most important one is usually

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The "better-off" test is the most important of Michael Porter's three tests of whether a proposed diversification will create value. This test asks whether the new business will perform better with the parent company's resources and capabilities than it would on its own. If the answer is yes, then the proposed diversification is likely to create value. The other two tests, the "attractiveness" test and the "cost of entry" test, are also important but are secondary to the "better-off" test.

Of Michael Porter's Three Tests of Whether a Proposed Diversification