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I was looking for a word that could be used in the context of "(organization 1) and its __________ organization, (organization 2)" that means 'created by members of the first organization with similar ideas when the first organization was destroyed'. I already saw subsidiary, but that wasn't quite what I was looking for, since the first organization did not survive the creation of the new one. Thanks for your answers.

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Spin-off is one possibility commonly used. In business, one leverages one's experience to create something new.

But if you are looking at metaphorical terms 'caldera' come to mind.

A caldera is a cauldron-like volcanic feature usually formed by the collapse of land following a volcanic eruption.

Phenix is another:

A Phoenix is a unique bird in classical mythology that lived for five or six centuries in the Arabian desert, after this time burning itself on a funeral pyre and rising from the ashes with renewed youth to live through another cycle.

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There is a legal concept of successor that often is applied to organizations

A successor is a person or entity who takes over and continues the role or position of another.

and

A corporate successor is a corporation that takes on the burdens of a previous corporation through merger, acquisition, or other means of succession.

USLegal.com

Similarly, one of Macmillan's definition of successor is

used about something such as an organization or machine that replaces something that did the same job before The Russian Federal Security Service is the main successor to the KGB.

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I think newco is the term generally used, though it does not necessarily imply that the old company is no longer existing.

  • (business) A new company, especially one spun-off from or replacing an existing company as a legal fiction to maintain ownership over an entity while separating it from the old company financially.

(wiktionary)

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  • I would reserve newco for firms which are formed or re-formed by the owners of the previous firm; for example, General Motors Company LLC is the newco for General Motors Corporation (its bankrupt forebear, which still exists, with all its bad debts, as the Motors Liquidation Company). In contrast, Eastern AIr Lines Group has basically nothing to do with Eastern Air Lines Inc., besides the trademarks it has accumulated. It is a namesake, not a newco. Still, +1 for plucking out this term.
    – choster
    May 19, 2015 at 22:21
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Offshoot could be used. [Oxford]

a thing that develops from something, especially a small organization that develops from a larger one

It's true that it doesn't imply the parent company is gone, but it also doesn't strongly imply that the parent is still there, like subsidiary does.

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    This doesn't have any of the implication that the parent company is gone, though. It seems like the question is looking for something like a phoenix... risen from the ashes of the previous iteration.
    – Catija
    May 19, 2015 at 20:25
  • @Catija: See edit
    – Tushar Raj
    May 19, 2015 at 20:31
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You could apply reincarnate to your sample usage:

Reborn in another body:
'he claims that the girl is his dead daughter reincarnate'
Oxford Dictionaries

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Rump works under some circumstances.

Merriam-Webster:

3 : a small or inferior remnant or offshoot; especially : a group (as a parliament) carrying on in the name of the original body after the departure or expulsion of a large number of its members

Happens to countries too: List of rump states.

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