I think Australia is home to a good number of high quality small-cap shares with bucket-loads of potential.
Three such shares which are on my radar at the moment are listed below. Here's why I think they could be worth a closer look:
Japara Healthcare Ltd (ASX: JHC)
Whilst the aged care sector is prone to regulatory changes, I believe the risk/reward on offer with an investment in Japara is compelling given Australia's ageing population. I'd pick Japara ahead of its rivals thanks to its strong management team and rapid expansion plans. By 2020 management has targeted an additional 1,100 new greenfield places, up 29% on its current places. Another bonus for investors is its generous dividend. At present its shares provide a trailing fully franked 5.5% dividend.
National Veterinary Care Ltd (ASX: NVL)
According to the RSPCA, pet ownership in Australia has grown to a massive 63% of Australian households. I believe this high level of pet ownership will result in strong demand for veterinary services moving forward, putting National Veterinary Care in a strong position to profit. Furthermore, as the veterinary market is highly fragmented, I think the company has the opportunity to follow in the footsteps of Greencross Limited (ASX: GXL) and grow significantly through acquisitions.
Think Childcare Ltd (ASX: TNK)
Much like National Veterinary Care, I believe Think Childcare has a long runway for growth through acquisitions. In fact, the company has a pipeline of newly developed, purpose built childcare centres around Australia waiting to be acquired progressively over the next five years from one of its incubators. I believe this and its trailing fully franked 4.2% dividend could make it a great buy and hold investment option today.